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Bumble Shares Fall 10%, Down 50% From All-Time Highs Despite Positive Q1 Earnings…

Updated: 13 May 2021

Shares of Bumble (NASDAQ: BMBL) are down 50% from their all-time highs as its share price fell again on Thursday after its Q1 earnings release. 

Bumble reported its earnings on Wednesday with users, revenue growth and profit smashing analyst expectations. 

Total paying users grew 30% to 2.8 million compared to 2.2 million in 2020, while net earnings were $323.4 million or 1.69 per share compared to a loss of $55.8 million or $0.02 per share the previous year. 

They reported revenue of $170.7 million in Q1 2021, compared with $79.1 million in 2020. Analysts had forecasted revenue to come in at $164.6 million.

The dating app company said it expects to report Q2 revenue between $175 million and $178 million with an adjusted EBITDA forecasted in the range of $42 million and $44 million. 

Despite the positive earnings release, Bumble's shares have fallen after the open on Wall Street, currently down over 10% at $42.10. It means it is trading over 50% below its all-time high of $84.80, seen back in February.  

BMBL_price_chart
Source: IG

On Thursday, several analysts commented and lowered their price targets for the stock:

  • Morgan Stanley said Bumble's Q2 guidance “raised questions.”
  • Susquehanna lowered its Bumble price target to $70 from $78.
  • Evercore ISI lowered their price target to $53 from $64.
  • Bumble's price target was lowered to $55 from $65 at BMO Capital.
  • Jefferies lowered its price target for the stock to $65 from $82.

Evercore ISI analyst Shweta Khajuria said Bumble is a “reopening play” and expects growth to hasten post-Covid. However, the analyst said they were “slightly discouraged” by Bumble's FY21 guidance.

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