SEEKING ALPHA – Apr 17 – Buy and hold MTCH for at least three to five years. Here's why:
- An emerging and fast-growing online dating services market
- Limited competition Tinder just made $0.4B revenue in 2017 and its closest competitors also are Match Group properties such as Match.com or POF.
- Tinder is a worldwide brand with no close number two internationally
- A strong leadership. An industry leader enforcing its patent
- Multiple growth – users, subscribers and revenue
- A scalable platform that costs little to operate. Operating profit already is at 27% in 2017, and projected to be above 30% in 2018.
- Higher barrier to entry for new entrants as the industry matures
- M&A history of Match Group
- Price appreciation. Since its IPO at $13.5 a share, Match Group's share price has been climbing steadily and is now very close to its all-time high.
- Valuation – Match Group is richly valued if we consider the price/sales ratio of 9 or the trailing P/E of 38.
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