Please ensure Javascript is enabled for purposes of website accessibility

Why Match Group Stock Surged Today

By Joe Tenebruso - Aug 5, 2020 at 4:00PM

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

Even in the middle of a pandemic, love will find a way.

What happened

Shares of Match Group (MTCH 0.33%) popped on Wednesday, following the release of the online dating leader's second-quarter results. As of 3:35 p.m. EDT, Match's stock was up more than 11%.

So what 

After a brief downturn during the early stages of the COVID-19 crisis, Match Group's subscriber growth figures rebounded. "As the pandemic took hold, we saw an increase in product usage, particularly among younger users and females," CEO Shar Dubey said in a letter to shareholders. 

Two mobile phones placed next to each other displaying the shape of a heart

People are turning to Match Group to find love during the coronavirus crisis. Image source: Getty Images.

The company's popular dating app Tinder was a particularly powerful growth driver. Tinder's revenue leapt 15% year over year, fueled by an 18% jump in average subscribers. Better still, Match Group's other brands saw revenue rise 9%, marking the first time since 2016 that they've delivered two consecutive quarters of growth. 

All told, companywide revenue rose 12% to $555 million. Its adjusted earnings, meanwhile, climbed 10% to $103 million, or $0.51 per share. 

Now what

Match Group is ramping up its ad campaigns, due in part to the strong returns it's seeing on its marketing investments during the pandemic. In turn, the company is forecasting revenue of at least $600 million in the third quarter, representing year-over-year growth of roughly 11%. 

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match Group, Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Match Group, Inc. Stock Quote
Match Group, Inc.
MTCH
$66.27 (0.33%) $0.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

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