Bumble Shares Plummet 92.5% in Five Years Post-IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy BMBL?
Source: Fool
- IPO Day Surge: Bumble's shares soared 76% on its IPO day, achieving a valuation of $14 billion, yet the subsequent decline highlights market concerns regarding its profitability trajectory.
- User Growth and Monetization: As of September 30, 2020, Bumble and Badoo had a combined 3.57 million paying users, a significant increase from 1.1 million prior to the IPO, but a 16% year-over-year decline indicates challenges in user retention and growth.
- Financial Performance: In the nine months leading to 2020, Bumble generated $376.6 million in revenue, with $231.5 million from Bumble and $145.1 million from Badoo, yet reported a net loss of $84.1 million, underscoring ongoing profitability pressures.
- Stock Price Decline Risk: Bumble's stock has plummeted 92.5% since its IPO, currently priced at $3.24, meaning a $1,000 investment at IPO would now be worth only $75, serving as a cautionary tale about the risks and uncertainties associated with IPOs.
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Analyst Views on BMBL
Wall Street analysts forecast BMBL stock price to rise
6 Analyst Rating
0 Buy
6 Hold
0 Sell
Hold
Current: 2.790
Low
3.50
Averages
4.08
High
5.00
Current: 2.790
Low
3.50
Averages
4.08
High
5.00
About BMBL
Bumble Inc. is providing online dating and social networking applications through subscription and in-app purchases of products servicing North America, Europe and various other countries around the world. The Company provides these services through Websites and applications that it owns and operates. It operates a family of apps, including Bumble app, Bumble For Friends app, Badoo app, and Geneva. On Bumble app, users can input information about themselves and set up a profile, which can be customized in many ways, such as by adding a Badge to prominently display certain values or characteristics. In addition to dating, in Bumble app it also provides products that enable social connection, offering users the opportunity to develop platonic connections through the BFF mode for friendships and through the Bizz mode for professional networking and mentorship. Geneva is a group and community app for people to connect based on shared interests.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Expansion: Scott will lead Sunbit's global marketing efforts, focusing on brand, product marketing, and customer communications, aiming to enhance market awareness and deepen customer relationships to support the company's ongoing growth in financial services.
- Financial Strength: Sunbit boasts a funding capacity of $1.4 billion from blue-chip partners such as J.P. Morgan and Citi, having served 5.3 million loan customers, showcasing its strong market position and growth potential in the fintech sector.
- Innovative Services: By offering no-fee credit cards and buy now, pay later solutions, Sunbit aims to make financial services more human and transparent, helping consumers manage their life expenses more easily, thereby reinforcing its competitive advantage in the market.
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Bumble Shares Plummet 92.5% in Five Years Post-IPO
- IPO Day Surge: Bumble's shares soared 76% on its IPO day, achieving a valuation of $14 billion, yet the subsequent decline highlights market concerns regarding its profitability trajectory.
- User Growth and Monetization: As of September 30, 2020, Bumble and Badoo had a combined 3.57 million paying users, a significant increase from 1.1 million prior to the IPO, but a 16% year-over-year decline indicates challenges in user retention and growth.
- Financial Performance: In the nine months leading to 2020, Bumble generated $376.6 million in revenue, with $231.5 million from Bumble and $145.1 million from Badoo, yet reported a net loss of $84.1 million, underscoring ongoing profitability pressures.
- Stock Price Decline Risk: Bumble's stock has plummeted 92.5% since its IPO, currently priced at $3.24, meaning a $1,000 investment at IPO would now be worth only $75, serving as a cautionary tale about the risks and uncertainties associated with IPOs.
See More
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- User Growth vs. Profitability: Bumble's paying users have increased to 3.57 million over the past five years, up from 1.1 million before the IPO, yet this represents a 16% year-over-year decline, indicating profitability challenges ahead.
- Revenue Decline: As of the latest earnings report, Bumble's total revenue decreased by 10% year-over-year, reflecting a conflict between user growth and revenue stability, which may undermine future investor confidence.
- Poor Stock Performance: Since its IPO, Bumble's stock price has plummeted from $43 to $3.24, a staggering 92.5% drop, meaning an initial $1,000 investment is now worth just $75, highlighting the risks associated with IPOs.
- Diminished Market Confidence: Despite some growth in user base, the ongoing decline in stock price and insufficient profitability have led analysts to adopt a cautious stance on Bumble's future, excluding it from the list of top investment stocks.
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- User Data Impact: Match Group (MTCH) confirmed that its user data was affected but stated that there was no indication of user login credentials, financial information, or private communications being accessed, reflecting the company's relative robustness in data protection.
- Industry Warning: Cybersecurity experts warn that social engineering attacks targeting U.S. companies are on the rise, a trend that could negatively impact trust and user engagement across the industry, prompting companies to bolster security measures.
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See More
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See More
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- Executive Appointment: Sunbit has appointed Shachar G. Scott as Chief Marketing Officer, bringing over 25 years of global brand-building experience from companies like Meta and Apple, marking a pivotal moment for the company's expansion into new products and markets.
- Market Expansion: Scott will lead Sunbit's global marketing efforts, focusing on brand, product marketing, and customer communications, aiming to enhance market awareness and deepen customer relationships to support the company's ongoing growth in financial services.
- Financial Strength: Sunbit boasts a funding capacity of $1.4 billion from blue-chip partners such as J.P. Morgan and Citi, having served 5.3 million loan customers, showcasing its strong market position and growth potential in the fintech sector.
- Innovative Services: By offering no-fee credit cards and buy now, pay later solutions, Sunbit aims to make financial services more human and transparent, helping consumers manage their life expenses more easily, thereby reinforcing its competitive advantage in the market.
See More
Bumble Shares Plummet 92.5% in Five Years Post-IPO
- IPO Day Surge: Bumble's shares soared 76% on its IPO day, achieving a valuation of $14 billion, yet the subsequent decline highlights market concerns regarding its profitability trajectory.
- User Growth and Monetization: As of September 30, 2020, Bumble and Badoo had a combined 3.57 million paying users, a significant increase from 1.1 million prior to the IPO, but a 16% year-over-year decline indicates challenges in user retention and growth.
- Financial Performance: In the nine months leading to 2020, Bumble generated $376.6 million in revenue, with $231.5 million from Bumble and $145.1 million from Badoo, yet reported a net loss of $84.1 million, underscoring ongoing profitability pressures.
- Stock Price Decline Risk: Bumble's stock has plummeted 92.5% since its IPO, currently priced at $3.24, meaning a $1,000 investment at IPO would now be worth only $75, serving as a cautionary tale about the risks and uncertainties associated with IPOs.
See More
Bumble Shares Plummet 92.5% Since IPO Despite User Growth
- User Growth vs. Profitability: Bumble's paying users have increased to 3.57 million over the past five years, up from 1.1 million before the IPO, yet this represents a 16% year-over-year decline, indicating profitability challenges ahead.
- Revenue Decline: As of the latest earnings report, Bumble's total revenue decreased by 10% year-over-year, reflecting a conflict between user growth and revenue stability, which may undermine future investor confidence.
- Poor Stock Performance: Since its IPO, Bumble's stock price has plummeted from $43 to $3.24, a staggering 92.5% drop, meaning an initial $1,000 investment is now worth just $75, highlighting the risks associated with IPOs.
- Diminished Market Confidence: Despite some growth in user base, the ongoing decline in stock price and insufficient profitability have led analysts to adopt a cautious stance on Bumble's future, excluding it from the list of top investment stocks.
See More
Match Reports Strong Q4 Results but 2026 Forecast Falls Short
- Revenue Growth: Match reported a 2% year-over-year increase in total revenue for Q4, reaching $878 million, surpassing analyst expectations of $871.7 million, driven by strong performance in its Hinge business and improvements in Tinder.
- Significant Profit Increase: Adjusted profit surged over 40% to $0.83 per share, well above the expected $0.59, indicating effective cost control and enhanced profitability measures within the company.
- Tinder Business Recovery: While Tinder's direct revenue rose 3% to $463.8 million, the number of paying users fell 8% to 8.8 million, suggesting that the company's efforts in launching new products and safety features are beginning to yield positive results.
- Market Sentiment Shift: Following the strong earnings report, Match Group's stock jumped over 7% in early trading, and retail investor sentiment shifted from neutral to bullish, reflecting growing confidence in the company's future prospects.
See More
Cyberattacks Target Bumble and Match Group Amid Rising Threats
- Cybersecurity Incident: Bumble (BMBL) contacted law enforcement after a contractor's account was compromised in a phishing attack, although no user database or personal information was leaked, raising concerns about the company's security.
- User Data Impact: Match Group (MTCH) confirmed that its user data was affected but stated that there was no indication of user login credentials, financial information, or private communications being accessed, reflecting the company's relative robustness in data protection.
- Industry Warning: Cybersecurity experts warn that social engineering attacks targeting U.S. companies are on the rise, a trend that could negatively impact trust and user engagement across the industry, prompting companies to bolster security measures.
- Market Reaction: The cyberattack incidents may lead to decreased investor confidence in Bumble and Match Group, potentially affecting their stock performance, especially against the backdrop of increasing focus on cybersecurity.
See More
JPMorgan Analysts Turn Bearish on Bumble and Fortinet Amid Market Caution
- Bumble User Engagement Decline: Analyst Cory Carpenter has assigned an underweight rating to Bumble, forecasting a double-digit percentage revenue decline and margin compression in 2026, indicating the company faces both structural and company-specific challenges.
- Fortinet Competitive Disadvantage: Analyst Brian Essex downgraded Fortinet to underweight, citing the company's competitive disadvantage in platform recognition during a vendor consolidation period, which raises concerns about maintaining product growth and margins.
- Textron Aviation Segment Pressure: Despite a 22% stock price increase for Textron over the past year, JPMorgan maintains a neutral rating due to expected pressure on sales and margins from a shortfall in fourth-quarter Cessna aircraft deliveries.
- Analyst Rating Divergence: Among analysts covering Textron, seven rate it as a strong buy or buy, while ten suggest holding, reflecting a divided market perspective on the stock's future performance.
See More
