Dating apps continue to grow in popularity and Match Group (MTCH) is reaping the benefits.
Dating apps are so popular that even criminals are getting in on the action. Here a robber posed as a woman and then car jacked the guys who showed up for the “date”.
According to a new report, eMarketer estimates 25.1 million users will use a dating app at least monthly, a 5.3% increase from the amount of users in 2018.
Check out the excellent revenue growth at Match Group.
With a Price/Earnings Ratio of 46.76, MTCH is very expensive. Even the Forward Price/Earnings Ratio of 35.24 is very expensive.
Keep in mind that anything overpriced will get absolutely destroyed in a market sell-off. Worse, dating apps are a consumer discretionary items and so as the economy slows and money gets harder to come by, dating apps will be the first thing to go.
Short-term, there may be a quick swing trade but MTCH does not meet the stringent requirements for a long-term buy and hold. Like most stocks on Wall Street, MTCH is over-priced. If the P/E and Foward P/E would drop in the 16 – 20 range, MTCH would be eligible for inclusion the long-term portfolio.
Disclosure: I do not hold any position in MTCH stock.