An analyst from Zacks Equity Research has classified Match Group as a ‘strong buy’, noting that the dating stock has risen from $14 to $71 in three years. Taken together, companies in the top ranked category have outperformed the S&P 500 in recent months.
An increase in the number of Tinder subscribers was singled out as a key driver of growth, both in absolute terms and ARPU. Last quarter, the flagship brand was approaching 5 million paid users.
The commentator then turns to Tinder’s Asia plans as an avenue for continued progress. The demography of India is a potential tailwind, with a huge percentage of the population in Tinder’s target market of 18-35.
Tinder Lite, a version of the app that will load on weaker internet connections, is likely to help Match reach singles in more states this coming year.
OkCupid, another Match property, has seen huge success in the subcontinent. The platform grew 600% year-on-year after launch, spurred on by trends such as rural to urban migration. A more independent young population is breaking free from arranged marriage traditions, instead taking up a more Western lifestyle at the start of adulthood.
Many of these trends are repeated across South East Asia, with populous countries like Indonesia and Malaysia also attracting investment from Match Group.
In Korea, Match has rebranded Tinder as a friend-finding service. This is a move to accommodate Korean culture, where Western-style dating behaviour is not so widespread.
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