What happened

Shares of Match Group (MTCH 1.51%) trailed a slumping market this week. The dating app specialist's stock dropped 15% through Thursday trading compared to a 2.8% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.

That move contributed to big short-term losses for Match investors, with shares down over 50% so far in 2022. It came as Wall Street grew more pessimistic about the outlook for growth stocks.

So what

This week, Match announced the timing of its upcoming earnings report. That operating update will arrive on Aug. 3, the company said on Wednesday. The news might have turned investors' attention toward that report, which could show slowing sales and weakening earnings trends as compared to earlier phases of the pandemic.

Match Group also was hit with a lawsuit this week as Alphabet's Google alleged that it didn't live up to its contract commitments in the platform's app store. But the bigger factor driving Match's stock lower is general unease about the economy. Inflation is pressuring consumer spending and people are focusing less on digital entertainment options as the pandemic wanes.

Now what

Match's early-August earnings update will answer many of the questions that investors have about the business. Bernard Kim officially stepped in as CEO in late May, and that report will mark a major opportunity for Kim to outline any strategic shifts that the management team has planned.

We'll also learn whether Match maintained the positive momentum that shareholders saw in Q1. Revenue rose 20% and adjusted operating income jumped by 19%.

User spending is slowing down, though, and advertising spending might worsen in Q2. That's why investors should be watching the platform's average revenue per user metric for signs that the business is under more financial stress. Worsening results here wouldn't threaten the long-term growth thesis, but they might signal tougher selling conditions in the second half of 2022.