Match Group, the parent company to online dating brands including Hinge, OkCupid, Tinder, POF and Match.com, is set to announce its Q3 2019 earnings on Tuesday, 5 November.
The company then will audiocast a conference call to review the results on Wednesday, 6 November at 8:30am Eastern Time.
Seeking Alpha analyst Rick Pendergraft argues that there is pessimistic sentiment surrounding the stock ahead of the results.
Of the 20 analysts covering Match, 11 give the company a “buy” rating. Eight say “hold”, and one says “sell”. Having only 55% of analysts interested in the bull case is a worrying sign given the success of the firm, he feels. Metrics like the short interest ratio may be behind the short position.
Pendergrafts general take is more positive. He writes: “I am bullish on Match Group for the long term. I am even comfortable enough to say you can enter into a position ahead of the earnings report because if there is a pullback after earnings, I don’t look for it to be a big decline.
“I can see the stock moving past the $100 level within the next year and as long as it remains above its 52-week moving average I would feel comfortable holding it – as long as the fundamentals remain above average.”
Other analysts have been debating whether umbrella IAC spinning the company will have a favourable or unfavourable effect.
Match Group will take on debt from its former owner, which could prove troublesome in the short term.
It will be in less danger of IAC picking off its profits in future, however, and the newfound freedom may motivate further growth.
Much of Match Group’s current strategy relates to international expansion. Executives are targeting APAC territories with brands such as Tinder, Pairs and recent acquisition Harmonica.
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