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.

Prices have been consolidating lately and the volatility has been reduced. We notice that large players showed an interest for MTCH in the last couple of days, which is a good sign.

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.

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