Mark Kelley, a market analyst from Nomura Instinet, has published a complimentary note about the future of the online dating industry.
He concluded that it is one of the most promising sectors and estimates that the market could grow to be worth $12 billion by 2020.
The message, sent to Instinet clients at the end of last week, said that more and more singles are willing to try online dating.
The numbers that Kelley referenced showed that 310 million people are expected to be actively using an online dating platform by 2020, a 15% increase from 2015. This anticipated data excludes potential growth in China.
It was also argued that Match Group’s continued development is the main contributor to industry’s growth. He issued a $66 target price for MTCH stock.
According to Markets Insider, Kelley said: “We believe that Match will remain the clear leader in dating for the foreseeable future, as Tinder growth continues, other brands continue to evolve, and as Hinge reaches scale.”
The MTCH share price has responded well to the coverage. It has risen by 10% since Thursday morning and, at the time of writing, sits at $54.14.
Finally, Kelley predicted that Facebook’s move into dating won’t have a negative impact on Match Group’s position as a market leader. This is due to the way he believes the company has been systematically and sensibly acquiring dating brands.
Kelley explained: “As far as other competition is concerned, we expect Match to continue acquiring assets it views as either a threat or additive to its already well-run brands.
“This is evidenced by its majority ownership of Hinge, which is a property we believe is a natural next step for Tinder members seeking longer-term relationships.”
Mandy Ginsberg has assured reporters and investors that Match Group does not see Facebook Dating as a threat.
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