Bumble (BMBL -2%) has not generated the buzz many had anticipated when it made its IPO debut in February. The online dating app, which also owns the Badoo dating app, made a splash initially with its IPO. It priced an upsized offering at $43 and opened at $76. However, the stock has since dropped over 40%, now levitating around $40. It has underperformed its main public rival Match Group (MTCH), which has declined less than 20% since February.With so many numerous dating apps, Bumble differentiated itself by giving women the power to message first. Badoo is a similar dating app but allows men or women to message first and centers around âdating honestly.â Both apps are free to use, and the company makes money through a combination of advertising, subscriptions, and in-app acquisitions.Bumble reported its second quarterly earnings report as a public company on May 12. The stock has been losing its momentum despite posting a profit and surpassing analystsâ revenue expectations. Bumbleâs plummet appears to be fueled by the lighter than expected FY21 revenue guidance, which solidifies the main fear investors have with dating apps â namely that as the pandemic eases, fewer people will meet and spend time online. CEO Whitney Wolfe stated that the company is being âcautiously conservativeâ due to the pandemic but notes its business works whether people are together or apart.
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