INVESTING.COM – Match stock has plunged 70% so far this year. Decelerating growth has led to a soft outlook for Q4. New management and new efforts need to work for the stock to reverse. In a post-pandemic environment, there's little reason to believe that the steady, long-term rise of online dating is going to end, yet, MTCH closed Tuesday at its lowest level in ~4 years. In 2021, MTCH traded ~70x expected adjusted EPS. Unsustainable. Revenue increased 25% in 2021, and 17% in 2020. Adjusted EBITDA was ~36% of revenue. Match expects revenue and adjusted operating income to decline YOY. The strong dollar is having an impact. (Bumble expects revenue growth of 22% to 25% in Q4). Wall Street remains behind Match: The average price target implies a ~60% upside.
by Vince Martin
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Mark Brooks: How well is Match positioned for growth and innovation? Please comment below.
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Match have traditionally acquired companies to gain new markets and innovation. I see no reason this will cease. So perhaps their future success will really be a function of the gambles they make in M&A.
The next major media shift into AR will also be a challenge for them and all, and I could see a new Tinder emerging that could shake up the market in a few years time when the real gravity of that transition becomes more apparent.
Match have traditionally acquired companies to gain new markets and innovation. I see no reason this will cease. So perhaps their future success will really be a function of the gambles they make in M&A.
The next major media shift into AR will also be a challenge for them and all, and I could see a new Tinder emerging that could shake up the market in a few years time when the real gravity of that transition becomes more apparent.