Dating apps aren't just a clever way to look for love. They're also a great business opportunity.
Dating app companies benefit from a number of built-in competitive advantages, including network effects and scalability. In many ways, dating apps are tech stocks with strengths that mirror those of social media companies. A successful app can deliver substantial profit margins.
There are only a handful of dating app stocks that are publicly traded, but that's not a bad thing for investors, especially since each one offers a different way to get exposure to the industry. The chart below shows three of the best dating companies you can invest in today.
Top dating app stocks
Top dating app stocks
| Companies | Market Cap | Description |
|---|---|---|
| Match Group (NASDAQ:MTCH) | $9.9 billion | Industry leader and owner of Tinder, Hinge, OkCupid, and Match.com. |
| Bumble (NASDAQ:BMBL) | $1.3 billion | Owner of female-first dating app Bumble. |
| Grindr (NYSE:GRND) | $2.2 billion | Dating app targeting the LGBTQ community. |
Match Group
Match Group
Match Group is the biggest and oldest online dating company. It owns the most brands, adding them as part of a "roll-up" strategy to grow well beyond its roots as Match.com.
Today, the company has more than 45 different online dating brands focused on different demographics, including age, ethnicity, sexual orientation, and world regions.
Match was founded at the dawn of the internet in 1995 as Match.com. The business really took off with mobile technology and Tinder, the swipe-based app it developed. Smartphones offered a new level of access to online dating apps, and Tinder grew rapidly through the 2010s, propelling Match's growth. Tinder is now central to the business, driving more than half of the company's revenue and serving as a business model template for other subscription-based swipe apps. More recently, Match acquired Hinge, an app that's more focused on relationships than hookups.
The stickiness of Match Group's products and their scalability help the company deliver strong operating margins, reaching 24% in the second quarter of 2024. However, the company has struggled to grow as the dating app category has matured, and there's been something of a cultural backlash against online dating as singles look for other ways to meet people.
Bumble
Bumble
Bumble, the creation of former Tinder marketing executive Whitney Wolfe Herd, went public in early 2021 and has benefited from the success of Match Group. Bumble is similar to Tinder in that users swipe left or right on prospective matches. However, a key difference is that traditionally, only women can make the first move, although the company modified that approach earlier in 2024, giving women the option of setting prompts for men to respond to initiate a conversation. Because of its female-first focus, the app is often preferred by women, and men tend to be less aggressive than on other online dating platforms.
Investors sent Bumble's stock soaring in its initial public offering (IPO) during the peak of the growth tech stock boom, but it's since plunged to well below its IPO price due to weak growth and broader headwinds in the online dating sector. In the second quarter of 2024, revenue grew just 3% to $269 million, although its profitability has improved thanks to cost cuts, including layoffs.
In February 2022, Bumble acquired Fruitz, a fast-growing European dating app focused on Gen Z. That gives it three apps, including Bumble and Badoo, a dating app founded in 2006 and which is still a market leader in Europe and Latin America. The acquisition of Fruitz shows that the company may be trying to grow through a similar rollup strategy as Match, though it hasn't made an acquisition since then.
Grindr
Grindr
Grindr went public through a special purpose acquisition company (SPAC) in 2022, but it's long been the online dating leader in the LGBTQ community.
Grindr is primarily known for hookups, and it differentiates itself from other online dating apps as it connects you with people who are closest to you, but the company has been making an attempt to expand its uses to relationships, friends, parties, etc.
Grindr has been outperforming its peers in online dating since it went public. As of the second quarter of 2024, it was on track for 27% revenue growth and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up 42%.
The company also said it was investing more resources into helping users find relationships and is introducing AI-first dating features with an assistant it calls Grindr Wingman.
Grindr's strength in the gay community is likely to remain an advantage and give it opportunities to expand its services in that community.
Related investing topics
Are online dating stocks right for you?
Although there are only a handful of online dating app companies available for investors, the sector is worthy of attention since there is still a significant growth opportunity despite the recent challenges in the industry. Meanwhile, new technologies such as virtual reality headsets or even the metaverse could add another dimension to dating app stocks and unlock more potential value. As the success of companies such as Match shows, dating apps can drive growth and profitability, which is a rare combination in the tech industry.
Of the companies above, Match is the most obvious place to start investing since it's been the industry leader since online dating began. Its ownership of Tinder and diversification with dozens of other brands give investors exposure to almost every corner of the dating industry. However, Bumble has the potential to be the next Match, and its namesake app is the most popular in the U.S. after Tinder. Finally, Grindr is the smallest but fastest-growing company in the sector.
With plenty of innovation and expansion ahead in online dating, it's not too late to invest in this exciting growth industry.
FAQ
Dating app stocks FAQ
Are any dating apps publicly traded?
Yes, there are a number of dating apps that are publicly traded, including Match Group, Bumble, and Grindr.
Why are dating app stocks down?
Growth has slowed in the industry as it has matured faster than some investors expected. Meanwhile, there has been a cultural backlash among some users who are searching for other ways of meeting people.
Does Tinder have a stock?
Tinder is owned by Match Group, which is publicly traded under the ticker (MTCH).
What companies own dating apps?
Match Group is the biggest online dating company. It owns Tinder, Hinge, OkCupid, and dozens of other apps. Other dating app companies include Bumble and Grindr.
