I enjoy the fact that Valentine’s Day is fast approaching, so investors might want to take a moment to reflect on how technology has advanced over the past few years and how that can help the dating services market, in general, in the future. Revenue from the dating services market will reach $7.7 billion in 2021 and keep growing at an annual rate of 8.6% annually by 2024. Naturally, several companies will benefit from this growth, which could present great long-term investing opportunities.
Technology like artificial intelligence and machine learning can continue to advance dating applications in the future. There are many compelling reasons to invest in dating app stocks at this time, which is why we have decided to put together a list of 3 dating app stocks investors can get excited about right now.
Bumble (NASDAQ: BMBL)
The newest dating app stock on which investors should keep an eye is Bumble. The company went public earlier this week, rallying over 63% on its first day of trading. Bumble’s dating app will empower women to initiate contact with their matches. The Bumble product portfolio is rounded out by friendship and networking applications, and the dating app gives the company a wide range of growth opportunities.
Experts estimate that Bumble will have 12 million active monthly users in September 2020, including an average of 2.4 million paying users. In 2020, Bumble generated $416.6 million, which represents a considerable increase year-over-year. Investors should probably hold off for a few weeks before buying shares since the company doesn’t have much of price history, but on the plus side, it’s a dating app stock that’s worth holding.
Match Group (NASDAQ: MTCH)
the number 1 downloaded dating app on the web, look no further than Match Group. The Tinder app was growing at an astounding pace in FY 2020 and delivered $1.4 billion in revenue, representing a year-over-year increase of 18%. In addition to Tinder, Match Group has its dating app network with such well-known platforms as Match, OkCupid, and PlentyOfFish. Match Group owns and operates dating apps in over 40 countries worldwide.
In Q4 2018, total revenue was up 19%, and adjusted EBITDA grew 15% to $897 million. If you want to invest, make sure you check out Match Group stock.
Momo (NASDAQ: MOMO)
Besides, Momo is an excellent option since it’s one of China’s most popular dating apps. The company operates a mobile social entertainment platform called Momo that is mainly used for dating and owns Tantan, a dating app geared toward younger users. Both of the apps rank among the most widely used in China.
Momo stock sold off hard during the onset of the pandemic and hasn’t quite recovered yet, meaning that it offers decent upside at this time. However, the company recently reported a year-over-year decrease in Q3 net revenues of 15.4% to $554.8 million. Monthly active users are also on the decline, and the company’s management expects another drop in Q4 net income due to the pandemic’s impacts. With that said, the stock is up 46% year-to-date and seems to be getting back in favour with investors. Consider this Chinese dating app stock a high-risk option with upside.