Analysts at Oppenheimer downgraded Match Group (NASDAQ:MTCH) Inc , a leader in digital dating products whose portfolio includes Match, OkCupid, Tinder, PlentyOfFish and Hinge, to “Perform” after it reported its first decline quarterly. in 4Q yesterday.
Analysts also lifted their $65 price target on the stock, but did not provide an updated price target, saying the cut was while they expected its Tinder product to stabilize after a significant loss in subscriptions during the quarter.
Shares of Match Group ( NASDAQ:MTCH ) were trading lower on Thursday morning, falling 1.1% to US$50.86.
READ: Match Group expects lower first-quarter revenue as more dating app users ditch Tinder
“While MTCH revealed an encouraging product roadmap and evidence of improving à la carte revenue, the stock is now a ‘show me story’ after losing a record number of paid subscribers (about 500,000), fueling concerns that online dating in US/Europe are maturing,” analysts wrote in a note to clients.
They noted management’s suggestion that the meeting was not recession-proof by exposing itself to younger consumers with less discretionary spending.
“While management attributed Tinder’s 268K loss to the removal of lower-priced tiers, the strategy calls for a shift in focus from ‘freemium’ to ‘premium’ through large paid marketing campaigns, indicating a mature business that has crossed boundaries of the peak,” analysts wrote.
Oppenheimer analysts added that while Meta Platforms Inc (NASDAQ:FB) entered the market with its Facebook Dating app in 2022, they had yet to see a negative impact on Match.
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