Experts Predict Coronavirus Outbreak Could Impact Match Group Shares
The coronavirus outbreak could impact Match Group’s shares in the short term, according to American financial services company Jefferies.
Jefferies analyst Brent Thill has predicted that share prices will drop as “fewer people will want to go on dates”, due to the continuing threat from the virus.
He estimated the company’s growth rate will fall from 16% to 14%, and voiced concerns that Match Group’s ongoing iOS subscription management problems and recent spin-off from the IAC could pose a “technical risk”.
Buy rating has been lowered from $88 to $80.
Last month, Match Group’s stock price dropped by 12% hours, following the publication of the company’s Q4 financial report.
Match Group subsidiary Tinder has added a pop-up notice to its app, offering users advice on how to keep themselves safe from the coronavirus.
It has been met with mixed responses. Some users say they think Tinder should remain a fun place away from fears, while others thanked the dating app for offering more advice on the virus.
The IAC confirmed its intention to spin off Match Group in December last year and claimed that it was well-positioned to prosper as an independent outfit. However, there were rumours that the dating umbrella had approached The Meet Group in February, to ask whether it would be interested in an acquisition deal.
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