$MTCH (owner of Tinder) stock - swipe left or right
6 August 2019:
- Online dating services provider Match Group forecast third-quarter sales above estimates and reported better-than-expected second-quarter revenue on Tuesday, as its popular app Tinder attracted more users.
- The app reported 5.2 million average subscribers in the quarter, 1.5 million more than last year.
- Revenue for the three months ended June 30 rose about 18% to $498 million, above expectations of $489 million.
IAC/InterActive Corp. is considering giving up control of its top two money-makers: Match Group Inc. and ANGI Homeservices Inc. in an effort to streamline its sprawling operations. The stock jumped on the news.
Match’s shares have gained more than seven-fold since its initial public offering in 2015. On Wednesday, its shares rallied the most ever after reporting surprisingly positive second-quarter earnings, with huge subscriber growth in the online dating app Tinder. The strength of Match’s financial results caused IAC shares to gain 11% Wednesday. They spiked 6.5% in extended trading after IAC’s earnings results and news that the company is considering spinning off Match and ANGI.
Match is among IAC’s greatest hits. The stock has nearly doubled this year alone, thanks largely to soaring Tinder membership. IAC sold a portion of Match in a 2015 IPO at $12. The stock is now $85, and IAC’s Match stake is worth close to $19 billion. It accounts for more than 90% of IAC’s current $21 billion market value.
But Match is obscuring IAC’s overall value. “Match has gotten so big and successful and is such a significant part of IAC, that one became a proxy for the other,” IAC CEO Joey Levin says.