Profit Pregame

Why Bumble Stock May Not Be Right for You…

Can the Dating App Company Maintain the Success of its IPO?

One of the newest publicly traded stocks is getting a lot of attention. Is it worth yours?

What’s happening?

Yesterday saw a new stock available for trading. Bumble Inc. (BMBL) is the creator of the popular dating app Bumble.

What sets Bumble apart from other dating apps is that it is designed to be a “women first” platform that allows women to make the first move. Once a woman has matched with someone, they are the only one that can initiate a conversation.

For its debut on the Nasdaq yesterday, BMBL sold $50 million shares at $3 apiece, raising $2.2 billion.

But will Bumble be able to deliver profits to its new shareholders?

Where’s the money?

Bumble is the latest dating app company to go public, joining the likes of Match Group, Inc. (MTCH) and several smaller platforms.

The convenience and efficiency of dating apps have created a wave of new users in recent years. According to Statista, 31% of Americans over 18 years of age have used online dating apps or services.

As Bumble has now opened up as a publicly traded company and raised an impressive amount of capital, investors will now have to wait and see if it can capture market share away from its biggest competitor, Match – which operates several successful dating apps like Tinder, OkCupid, and several others.

Will BMBL be able to move up from here after its hot start?

Here’s what I think…

How do I get some?

To gain some insight on Bumble’s prospects, one might look to the meteoric rise in MTCH stock over the last year and think that BMBL should have no problem emulating that success.

But honestly, that may only be contributing to a potential gut punch for early investors.

How many times have we seen over the last few years a highly touted stock shoot up on a wave of hype shortly after its IPO, only to watch it fall back to earth and leave early investors holding the bag?

Plus, as the COVID-19 lockdowns end, we’re likely to see a decline in users of dating apps as more people are able to return to meeting face to face.

Look, BMBL could ultimately be a very profitable stock, but I won’t be the one making the first move to court it.

There are just too many unknowns on such a new and unproven stock for me to jump in.

Put Your Money into the Best Stocks in the Market

Instead of taking a flier on the newest publicly traded companies, you should really take a look at what my colleague Tom Gentile is doing.

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And the best part is that, no matter which way the stock moves, Tom has a plan that can deliver huge gains. I’m talking about the potential for payouts of thousands of dollars with the right size stakes by targeting only the best stocks.

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In the Spotlight: A Big Break for the Aircraft of the Future

Electric aircraft startup Archer announced yesterday that it will go public through a merger with a blank-check company in a deal worth around $3.8 billion.

The developer of small electric “air taxis” that can transport passengers up to 60 miles at 150 miles per hour has received an order from United Airlines for $1 billion worth of its aircraft with an option for an additional $500 million more.

The electric transportation industry – from cars to planes and more – is gearing up in a big way. I’ve taken a special interest in this space, and I’ll be doing some deep dives to bring you the best investment ideas from this exciting opportunity.

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