Aegis Capital Analyst Backs The Meet Group Following Q2 Earnings
Victor Anthony, an analyst at Aegis Capital, has maintained a Buy rating on The Meet Group following the firm’s Q2 earnings call earlier this week.
The commentary comes as part of a detailed report on the social media stock. It found that the analyst consensus was a Strong Buy rating, and that recent news coverage has been overwhelmingly positive for The Meet Group’s portfolio brands.
Insiders have bought over $70,000 in stock over the past three months, suggesting that analyst optimism is shared by the company’s executives.
Anthony maintained the rating amid a drop in valuation, with MEET currently trading at 42% below its 12-month high from early March.
He writes: “We recently held investor meetings with MEET’s CEO Geoffrey Cook, in which he noted that several new near-term engagement and monetization features are on track for launch in the second half. Levels, which encourages both streamers and viewers to increase usage to unlock features by leveling up, is expected to launch on MeetMe and Skout later summer.
“(…) MEET also plans to launch special events and thematic Battles, which should drive both monetization and engagement. Lastly, MEET is also expecting to launch a standalone live app for users who want to engage in live streaming but do not want to do so on a dating product.”
Q2 revenue at The Meet Group was up 22% year-on-year to $52.0 million. Adjusted EBITDA also rose significantly, moving from $7.6 million to $9.8 million.
In July, CEO Cook appeared on a panel discussion concerning user safety alongside senior executives from Match Group, Spark Networks and the Online Dating Association.
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