What happened
Match Group (MTCH +2.20%) investors lost ground to a falling market this week as shares declined 12% through Thursday trading compared to a 3% slump in the S&P 500, according to data provided by S&P Global Market Intelligence. That move continued a generally negative trend for the online dating platform giant, whose shares are down over 60% so far this year and sitting near their lows for 2022.
The drop wasn't powered by specific operating news; rather, investors continued to sour on companies like Match, which are reporting slowing growth and operating losses.
So what
The tech-heavy Nasdaq index dove 6% through Thursday, dragging down most of its constituents. Match joined many peers, including Bumble, in falling during this rough trading week.
NASDAQ: MTCH
Key Data Points
Match has some specific challenges that have investors avoiding the stock today. Management projected a sales decline for the current quarter, for example, and the platform swung to an operating loss last quarter. The core Tinder service is struggling to maintain steady growth even as average monthly spending rises.
Now what
Match is hoping to get its Tinder platform back up to speed over the next few months, and investors will be looking for signs of progress there when the company reports its next earnings update in late October or early November.
Until then, expect the stock to continue falling harder than the market during down weeks like this one. Match's operating struggles have made it a riskier stock to hold as the threat of a recession increases.
While recessions are temporary, and Match's stock has become much cheaper, many investors will prefer to watch from the sidelines until they see firmer evidence of a growth rebound, or an end to operating losses.
