Assuming the mantle from the esteemed founder Whitney Wolfe Herd would unnerve the stoutest souls. The ascendancy of Lidiane Jones to Bumble’s (BMBL) CEO, bears the burden of following in the footsteps of an entrepreneurial legend. Herd epitomizes a new breed of business titans – intelligent, resilient, and female. Kudos to Herd for carving her own path in the world, eschewing society’s shackles to promote equity and inclusivity.
If valor alone determined BMBL’s stock value, it would command unanimous acclaim. Regrettably, the Barchart Technical Opinion, measuring sentiment from a plethora of charting data, designates Bumble as a “strong sell.” Logic validates this conclusion as the shares stumbled over 27% in the current year.
Yet, amid the gloom and doom, Jones harbors a plan – a proposition that has long been clamoring for attention. While Bumble’s ethos of empowering women by compelling them to make the initial move was its signature, it has also been a thorn for a segment of users. Jones candidly acknowledged in an interview with the New York Post, “It’s obviously been our signature. But it feels like a burden for a subset of our customers today.”
It’s a palpable burden indeed. Why it took the company this long to address the issue is a conundrum. In a realm where virtuous and diligent males are already battling to find a compatible partner, denying them the opportunity to make the first overture only restricts their engagement to the cream of the crop. Such men, arguably, have no need for Bumble. Thus, it’s no surprise that the sentiment among options traders is tilting favorably towards BMBL stock, perhaps heralding a bullish resurgence.
Rising Optimism Sparks Interest in BMBL
Following last Friday’s closing bell, BMBL stock blipped on Barchart’s unusual stock options volume screener. This feature, a boon for retail traders, unveils where the savvy money is flowing. Total volume for Bumble reached 52,998 contracts against an open interest of 226,228 contracts.
Of particular note, Friday’s volume surged more than 530% compared to the trailing-month average. Call volume limped at 468 contracts, while puts surged to 52,530. Consequently, the put/call volume ratio resided at 112.24, indicating robust bearish sentiment.
Delving deeper into Barchart’s options flow screener, reserved for Premier members, reveals a conspicuous tilt towards bullish bets, evident in the big block transactions largely initiated by institutions. Fintel’s options flow screener shared a similar narrative, with bullish sentiment overpowering the bearish counterparts.
Fundamentals Emerge as Bumble’s Potential Savior
Typically, caution would be warranted on BMBL stock, if not an outright bearish stance. Bumble’s strategy of Women-First approach has inadvertently hindered its growth, akin to a self-inflicted wound. You don’t dictate desires to customers; it’s the other way around.
Customers dictate what they yearn to acquire, and if a business fails to comply, extinction looms. Unfortunately, Bumble’s laudable activism inadvertently hampered its profitability. Yet, a glimmer of hope emerges as the new leadership acknowledges the predicament and vows to rectify it. Fundamentally, the company finds itself at a crossroads. The abyss of the fourth-quarter loss per share of 19 cents against an anticipated 11 cents heralds a pressing need for change.
Should Jones earnestly pursue rectifying Bumble’s chief flaw, BMBL stock might metamorphose into a lucrative investment. Keep a close watch on this unfolding saga.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
