Match Group downgraded by Oppenheimer analysts on Tinder subscription losses - Proactive Investors USA

Analysts astatine Oppenheimer person downgraded their standing of Match Group (NASDAQ:MTCH) Inc, a person successful integer dating products whose portfolio includes Match, OkCupid, Tinder, PlentyOfFish, and Hinge, to “Perform” aft it reported its first-ever quarterly diminution successful 4Q yesterday.  

The analysts besides removed their $65 terms people for the banal but did not supply an updated terms target, stating the downgrade was portion they waited for its Tinder merchandise to stabilize aft a important nonaccomplishment successful subscriptions during the quarter.

Match Group (NASDAQ:MTCH)’s shares were trading little connected Thursday morning, down 1.1% astatine US$50.86.

READ: Match Group expects little 1Q gross arsenic much dating app users are standing-up Tinder

“While MTCH unveiled an encouraging merchandise roadmap and grounds of improved à la carte revenue, the banal is present a ‘show maine story’ aft losing a grounds fig of paid subs (around 500,000), stoking carnivore concerns that US/Europe online dating is maturing,” the analysts wrote successful a enactment to clients.

They noted management’s proposition that dating was not recession-resistant being exposed to younger consumers with little discretionary spending.

“While absorption attributed 268K Tinder sub nonaccomplishment to the removal of lower-priced tiers, the strategy requires changing absorption distant from ‘freemium’ to ‘premium’ via ample paid selling campaigns, indicates a maturing concern that has passed highest margins,” the analysts wrote. 

Oppenheimer’s analysts added that, portion Meta Platforms Inc (NASDAQ:FB) entered the marketplace with its dating exertion Facebook Dating successful 2022, they were yet to spot an adverse interaction connected Match.

Contact the writer astatine emily.jarvie@proactiveinvestors.com

Follow her connected Twitter @emilyjjarvie