Match Group’s Stock Faces Downturn Amid Mixed Earnings Report

Match Group, Inc. (MTCH), based in Dallas, Texas, holds a market capitalization of $7.6 billion and is a prominent player in the online dating industry. The company operates over 45 dating platforms, featuring notable brands like Tinder, Match.com, Hinge, OkCupid, Plenty of Fish, Meetic, OurTime, and Pairs.

Over the past 52 weeks, MTCH has struggled compared to the broader market. The stock has decreased by 7.1%, while the S&P 500 Index ($SPX) has increased by 8.2%. Year-to-date, MTCH shares are down 8.4%, contrasting with the $SPX, which has dipped by 4.7%.

Examining specific sectors, Match Group has also fallen behind the Communication Services Select Sector SPDR ETF Fund (XLC), which saw gains of 20.1% over the same period.

On February 4, Match Group reported its fourth-quarter 2024 earnings, leading to a 7.9% drop in share price the following trading day. While revenue reached $860.2 million—slightly above expectations—it marked a 1% decline year-over-year. Adjusted Operating Income fell by 10%. Tinder also reported a 3% revenue decrease and a decline in payers, although revenue per payer improved slightly. In contrast, Hinge performed favorably, with revenue up by 27% and strong growth in payers and revenue per payer. However, weaknesses arose in other segments, particularly Evergreen brands and operations in Asia, prompting a cautious outlook for the first quarter of 2025.

Looking ahead to fiscal 2025, analysts predict that MTCH’s earnings per share (EPS) will increase by 8.5% year-over-year to $2.42. The company has a mixed earnings history, having met or surpassed consensus estimates in three of the last four quarters, while falling short in one.

Among the 23 analysts following MTCH, the consensus rating stands at “Moderate Buy,” which consists of eight “Strong Buy” ratings, one “Moderate Buy,” and 14 “Holds.”

This outlook is less optimistic than three months earlier, when there were 10 “Strong Buy” ratings.

On April 29, Kunal Madhukar of UBS Group AG (UBS) reiterated a “Neutral” rating for Match Group, reducing the firm’s price target from $34 to $31.

Currently, MTCH’s average price target stands at $35.67, indicating a 19.1% premium over current market prices. The highest target among analysts, $52, suggests a potential upside of 73.6% from present levels.

On the date of publication, Kritika Sarmah had no positions in any securities mentioned in this article. All information provided is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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