Nearly 70% of Americans who met someone on a dating app said that it created a long-running romantic relationship. But, in many cases, dating app stocks haven’t caught the same tailwind considering their massive popularity.
But, that could change this year as Valentine’s Day approaches. We’re out of the pandemic-era social distancing demands. And we are slowly exiting economic turbulence that kept people at home on the couch, saving cash. In fact, 2024’s Valentine’s Day might be the first since 2019 that comes close to approximating a normal social landscape.
And these dating app stocks stand to gain from a return to normalcy.
Bumble (BMBL)
Bumble (NASDAQ:BMBL) isn’t the biggest dating app stock, but it is the fastest-growing. The company hit the #2 market share spot with a bang. It runs past legacy competition to secure 20% of the total available audience. Still, the stock struggled in recent years, but executive turnover might be the board of directors’ love letter to investors.
In a move reflective of overall market vibes, founder Whitney Wolfe Herd was pushed aside for Lidiane Jones. Jones’ past work includes executive roles at Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM). While forced removal from your founders’ spot isn’t fun, it highlights what investors want today. Reports called Jones a “strong operator” compared to Herd’s status as a “great visionary.”
Jones’ accomplishments include ramping up Salesforce’s cloud product lines before pivoting to the CEO role at Slack. In all of her roles – starting as a basic engineer at Microsoft – Jones kept the ball moving forward. That’s just what Bumble needs now after a series of stock losses.
Match Group (MTCH)
Though Bumble might be the dark horse dating app stock, Match Group (NASDAQ:MTCH) is the undisputed dominator.
The company owns the top dating apps, including top market share holder Tinder, alongside OKCupid, Plenty of Fish, Hinge, and more. In fact, a Match Group property is likely the first app you think of when considering dating stock apps. It’s also many consumers’ go-to option.
The same factors mentioned above – post-pandemic malaise and economic turbulence – put pressure on MTCH’s stock in recent months. However, well-known activist investor firm Elliott Management is increasing its stake in the dating app stock. And that could prove the punch MTCH needs to get back to where it once was. The company has a $1 billion position in the stock and will likely begin pushing for a board seat soon to bring lagging margins back up to snuff.
Priced to buy, Match Group is a value stock with growth potential – making it a lovely addition to your Valentine’s Day portfolio.
Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) isn’t a dating app stock, but it is downstream of the industry. Where else are matches supposed to meet? The coffee staple is the most popular place for a first date – not surprising, considering that the coffee shop is widespread..
And, if you’re building a portfolio for Valentine’s Day, it’s just the stock to anchor the dating app selections.
Further, once inflation is fully under control, Starbucks could skyrocket. Using the 2008 recession as a model, research firm Trefis points to Starbucks’ post-2008 performance as a potential indicator of things to come. In fact, there’s nearly a 40% upside if Starbucks climbs back to pre-inflationary levels. And, though inflation climbed a tad last month, signs indicate a recovery path that could create massive tailwinds for Starbucks.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.