Match Group Stock Slips on Earnings, Here’s Why It’s The Time To Buy

Trade MTCH Stock Your Capital Is At Risk
Ollie Martin
Updated: 2 Feb 2022

Key points:

  • Match Group stock dropped 5% postmarket on narrowly-missed earnings
  • Investors weren't satisfied with the 24% growth, missing consensus by 1%
  • As variant's subside, the next few months could spur strong growth for the company

In a busy week for earnings; Match Group (NASDAQ: MTCH) has been the latest victim of an overly-discerning market. As investors grow cautious in the current economic haze, a 1% miss is all it takes for bears to take control. Match Group is the largest digital dating company, with competitors like Bumble still slightly lagging in the shadow of the well-renowned dating giant; parent company to hugely popular Tinder, Match, OkCupid, and the rapidly-growing Hinge. 

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After posting earnings after the closing bell on Tuesday, MTCH stock dropped around 5% postmarket. While 24% quarterly growth might seem respectable given the current headwinds to the dating landscape, shareholders were looking for a 25% rise over December, so when the company posted its minimal 1% miss – a sell-off was initiated.

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Tinder proved the largest growing sector, with quarterly growth of 23% and a revenue increase of $450M. Hinge, which is one of the company’s newest, fastest-growing brands – doubled its revenue across the year. 

Investors shouldn’t be looking at Match Group’s earnings with disappointment. In fact, MTCH stock is now better priced than ever. Such a narrow earnings miss in the face of a landscape where dating has felt the brute force of the pandemic should be respected, and if anything, should excite investors for the coming months; as Omicron starts to fade away and in-person dating returns stronger than ever.

With a revenue just 2% short of the $820M consensus, Match look set for a glorious next few months if Covid variants start to die down…but there’s the big ‘if’. Match is hoping for a solid next few months, with a forecasted growth of 18% to 20% revenue growth for March, and a further rebound in the summer months.

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