Should You Invest in Bumble?

OVERVIEW

Bumble Incorporation is a company based in the United States. It is a technology company that operates a dating app and website in many countries around the world. The company makes money by offering paid services and subscriptions on these platforms. The company was founded in 2014.

Why You Should?

  1. Bumble is a great growth play in an investor’s portfolio. The company’s products and services are growing in popularity as the dating scene across the world moves online and on platforms such as Bumble. This growth opportunity will benefit the company and its investors in the future.
  2. Bumble is an extremely popular platform with younger individuals and millennials. This will benefit the company’s future growth as millennials around the world will drive its future growth and operating strategies. This will also benefit investors in the company.
  3. Bumble offers an extremely unique product in the online dating space. This will benefit the company gains more users and traction across the markets that it operates and will also help the company’s future growth. The company can also stand out from the competition within this space as well. This will also benefit the company’s investors.
  4. The company has reported rising revenues and profits over the past couple of financial years due to the reasons mentioned above. This has helped the company’s growth and will also benefit investors in the company.

Why You Should Not?

  1. The company recently went public on the stock market. This caused the stock price to rise a lot due to the enthusiasm surrounding the event. I would wait for the stock price to fall a little bit and then invest in this company. I would also expect the company to have some growing pains in the short term before having steady growth and operating periods.
  2. Bumble faces tough competition in the online dating space. Some companies like Tinder and other tech companies offer similar products and services to the ones that Bumble offers. Other companies like Facebook and Snapchat also offer similar meeting spaces for individuals. This will hurt the company and its investors in the future.

MY OPINION

I think that Bumble might be a decent long-term investment due to its position as a good growth play, its popularity with millennials, a unique product and service offering, and rising revenues and profits. However, tough competition and its recent IPO might hurt the company and its investors in the short and long-term.

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Aaditya Patel

Aaditya Patel

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.