MTCH (Update)

Match Group Inc

TMT, Consumer


Presented:11/24/2020
Price:$138.67
Cap:$36.06B
Current Price:$38.62
Cap:$9.96B

Presented

Date11/24/2020
Price$138.67
Market Cap$36.06B
Ent Value$35.21B
P/E Ratio71.46x
Book ValueN/A
Div Yield0%
Shares O/S260.02M
Ave Daily Vol2,398,082
Short Int5.06%

Current

Price$38.62
Market Cap$9.96B
Match Group, Inc. engages in providing dating products. Its brands include: Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24. It operates through the following segments: Dating and Non-Dating. The Dating segment provides dating products. The Non-Dating segment offers a variety of education services including test preparation, academic tutoring, and college counseling services. The company was founded on February 12, 2009 and is headquartered in Dallas, TX.

Please note, this is an update to Match Group Inc (MTCH) - Long, which was first published on 12/20/2019

Publicly traded companies mentioned herein: Match Group Inc (MTCH)

Highlights

The presenter is long shares of Match Group Inc (MTCH). Despite the stock’s recent price appreciation to ~$140/share, he believes it's still a compelling investment opportunity as the company begins to diversify the business. He points to two major changes that are currently happening with their portfolio brands that he feels are misunderstood. First, MTCH’s efforts to fix problems at their legacy brands (Match.com, OkCupid, and PlentyofFish) are starting to pay off and growth in these areas is starting to reaccelerate. Additionally, MTCH’s early stage emerging brands are experiencing triple digit growth. These changes in their portfolio brands combined with the upcoming launch of Tinder Platinum has created a more positive revenue algorithm that looks much different than it has in the past. MTCH currently trades at 35x the Street’s forward EBITDA. Holding the current multiple relatively constant, he believes the stock could double from its current price of ~$140/share to ~$280/share, based on compounding revenue and margin expansion.

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Idea Discussion

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