Please ensure Javascript is enabled for purposes of website accessibility

Why Match Group Stock Gained 14% in May

By Demitri Kalogeropoulos – Jun 5, 2019 at 1:08PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Its dating apps are catching on with more people around the world.

What happened

Shares of online dating service giant Match Group (MTCH) well outperformed the market last month, gaining 14% compared to a 7% decline for the benchmark S&P 500, according to data provided by S&P Global Market Intelligence. Overall, the stock is now up more than 50% in 2019, while the broader market has risen less than 10%.

A woman kisses the screen of her laptop.

Image source: Getty Images.

So what

Investors were happy with the first-quarter report that Match Group released in early May. The data showed healthy growth in the Tinder app, with average subscribers rising 36% year over year to 4.7 million. Revenue per subscriber inched higher as well, and marketing costs fell as a percentage of sales. Those successes helped lift the company's net earnings by 23% to $123 million.

Now what

Match's growth outlook is bright, with new apps like Hinge seeing early success in attracting robust user bases. Investors are even more excited about the portfolio's potential in international markets such as India and Japan. Thus, as long as subscriber gains remain strong (especially in combination with falling expenses), it's reasonable for investors to expect this stock will continue to perform well, even amidst declines in the broader market.

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match Group. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.