Blogs -Is Bumble Stock a Better Buy Than Tinder?

Is Bumble Stock a Better Buy Than Tinder?


October 13, 2021

author

I/O Fund

Team

In the video discussion below, I check in on Bumble following the company’s IPO earlier in the year. Bumble’s stock is down 30% since its IPO, as total growth at the company has somewhat stagnated. However, Bumble users are split 50/50 between Bumble and a Russian dating app called Badoo. Badoo isn’t growing, but Bumble is. In fact, Bumble sales grew strongly in the latest quarter.

I suspect that the Street may be overlooking Bumble because of the underwhelming results of the consolidated company. However, by stripping out Badoo from the company, Bumble results appear much stronger. Bumble App sales grew 55% YoY, which was much faster than Tinder’s 26% YoY growth rate in the latest quarter. Yet, despite its stronger growth rate, Bumble trades at half the valuation of Tinder (MTCH).

Sign up for I/O Fund's free newsletter with gains of up to 1100% - Click here

Looking forward, I believe that as Bumble App users continue to grow strongly, user mix will favor Bumble over Badoo. This trend will force the Street to take an interest in the fast-growing company.  As a result, the large valuation delta between BMBL and MTCH (Tinder) will likely close as Bumble’s growth is better appreciated by the market. If we value BMBL based purely on Bumble App sales (excluding Badoo) but use Tinder’s multiple, there is plenty of upside in Bumble’s share price.

Disclaimer: This is not financial advice. Please consult with your financial advisor in regards to any stocks you buy.

Loading...

More To Explore

Newsletter

Nvidia’s Q2 earnings forecast faces pressure from China GPU bans and a delayed Blackwell ramp, but strong AI chip demand may drive a rebound in H2 2025.

Nvidia Stock Faces a Choppy Q2, But Tailwinds Build for H2 Acceleration

Nvidia’s streak of blockbuster earnings has turned investor expectations into a high-stakes game— anything short of perfection risks disappointment. As the company gears up to report fiscal Q1 results

May 23, 2025
Microsoft stock up as Azure tops AWS, Google Cloud in Q3 2025

Microsoft Stock Surges After Q3 2025 Earnings: What Separates Azure from AWS, Google Cloud

Microsoft stock jumped after Q3 2025 earnings as Azure emerged as the only major cloud platform to accelerate growth this quarter — a rare feat amid macro pressures. Azure’s 35% constant currency grow

May 16, 2025
Bitcoin price chart signaling potential top despite favorable crypto news

Why Bitcoin’s Bull Run May Be Nearing a Top Despite Pro-Crypto Tailwinds

Since calling the Bitcoin bottom near $16,000 in late 2022, the I/O Fund has maintained a disciplined, contrarian approach — issuing 13 buy alerts before Bitcoin surged above $100,000. Now, signs sugg

May 09, 2025
S&P 500 hits key 2025 target as bond market and consumer trends signal rising volatility and shifting stock-bond correlation.

2025 Market Outlook: Why Stocks and Bonds Are Signaling More Volatility

As the S&P 500 reaches a key bounce target, troubling signs in bonds and consumer behavior suggest this market rally may be on thin ice. I/O Fund’s Knox Ridley explains why volatility may intensify an

May 02, 2025
Illustration of an investor holding an umbrella, shielding from stock market volatility.

The Impact of Tariffs on the Stock Market: Q1 Preview

Rising tariffs are injecting significant uncertainty into the stock market, triggering daily volatility and forcing analysts to revise earnings estimates. Our Q1 preview dives into the potential impac

April 25, 2025
Aerial view of Tesla's new Model Y Juniper parked in lines. Courtesy of Tesla, Inc.

Tesla Stock Faces Recalibration of Growth Expectations

Tesla’s stock is now facing a recalibration of expectations after Q1’s delivery report missed by a wide margin. Q1’s analyst consensus has gone from $25.98B at the start of the year to $23.97B in earl

April 17, 2025
an illustration of a government building, constrained by heavy chains, with a volatile stock chart displayed above.

The Fed Can’t Save This One: Why Bonds May Break the Stock Market in 2025

In early 2025, as markets rallied to new highs, we warned that divergence across key sectors signaled a looming correction. Now, with all major indexes in a technical bear market and bond market dysfu

April 11, 2025
Silhouette illustration of Larry Ellison, Oracle's CTO and executive chairman.

Oracle Stock Outlook: Revenue Could Double by FY2029, yet Targets Seem Lofty

Late in 2024, Oracle outlined an ambitious plan to nearly double its revenue by fiscal 2029, hinging on long-term growth in enterprise AI and cloud spending. Oracle sets itself apart from its hypersca

April 04, 2025
Graphic showing I/O Fund's "210% Cumulative Returns" with financial charts and a world map in the background.

I/O Fund Reports 210% Cumulative Return -- Ranking Above Wall Street's Best

In 2024, I/O Fund posted a 35% return, significantly outperforming popular tech ETFs, which recorded an 8% return over the same period. On a cumulative basis, the results translate to a remarkable 219

March 31, 2025
Illustration of an investor burdened by the weight of market downturn

The Harsh Truth: Retail Investors Take the Brunt of Market Losses

Retail investors face significant disadvantages in the stock market, often underperforming institutional investors by a wide margin. Studies show that high-frequency trading firms dominate market acti

March 28, 2025
newsletter

Sign up for Analysis on
the Best Tech Stocks

https://bethtechnology.cdn.prismic.io/bethtechnology/e0a8f1ff-95b9-432c-a819-369b491ce051_Logo_Final_Transparent_IOFUND.svg
The I/O Fund specializes in tech growth stocks and offers in-depth research for Premium Members. Investors get access to a transparent portfolio, a forum, webinars, and real-time trade notifications. Sign up for Premium.

We are on social networks


Copyright © 2010 - 2025