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Match shares surge 13% thanks to Tinder 🔥
It’s a match… for Match. The online dating company who owns Tinder reported some pretty attractive Q2 earnings, whilst announcing some optimistic predictions for Q3.
Tinder gold strikes gold: Tinder saw an increase in subscriptions throughout Q2. Its paid plans range between £10 to £20 a month, and with at least 10.7 million paid subscribers, we don’t need to do the maths to tell you Tinder is a money spinner.
Love is
blindprofitable: A new $500 per month (yes, month! ) paid plan is coming. ‘Tinder Vault’ is a super-elite tier, expected to be released at some point this year. In Q3, Tinder estimates revenue of $880m, which is $17m higher than analysts’ expectations. Tinder Vault might just break the bank.
Meta shares jump another 7% thanks to its ad business 🌐
If it ain’t broke, don’t fix it: It’s not the metaverse, NFTs or even Threads that has Meta investors excited. But rather, its tried and tested ad business that continues to cement its position as the second-best S&P 500 performer this year (second only to Nvidia).
Can’t stop, won’t stop: Meta shares popped for the ninth month in a row, the longest rally since the company’s IPO in 2012. Ad revenue rose 12% in Q2, outpacing Google’s 3% growth. This helped Meta outperform analyst expectations by almost $900m .
Moving at a-llama-ing rates: Web 3 initiatives and copying Twitter may not have gone exactly to plan, but that isn’t stopping Meta from continuing to take on new industries. Meta has joined forces with Microsoft to introduce Llama, its rival to OpenAI’s ChatGPT and Google’s Bard.
Pinterest loses investor interest as shares dip 4%📍
All looks fine to the untrained eye: Pinterest outperformed revenue expectations by $12m, increased sales by 6% from last year, and reduced net losses by 19%. So why on earth are shares down? It’s all to do with its competitors…
David vs Goliath: Pinterest makes money via advertising. The problem is, Meta and Google do the same thing, only they’re 50 times bigger. When two out of the top 10 biggest companies in the world are your competitors, life is never going to be easy. Just how will the small shepherd boy take on these enormous giants?
A red flag for investors: Pinterest didn’t give any specific numbers on what it expects its Q3 figures to look like. This is a red flag, especially when Meta is reporting prolific month on month growth.
What have we learned this week? 🤓
Match is a market leader: Match is worth a whopping $13 billion, and it’s easy to see why given it owns Tinder, Hinge and Match.com.
Meta’s business model is aggressive: With such a stable ad business to fall back on, it can afford to take risks and get things wrong.
Competitors are key: Pinterest has increased sales, reduced its losses and increased user engagement. But if investors see potential for better returns with your competitors, you can bet that’s where their money is going.
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*Figures correct as of August 2nd 2023.
Past performance does not guarantee future results. Capital at risk when investing. This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.
