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Underloved Match Stock Soars After Blowout Earnings

The dating services company reported an earnings and revenue beat

Managing Editor
May 8, 2019 at 9:54 AM
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A big earnings winner this morning is Match Group Inc (NASDAQ:MTCH), after the dating services company reported adjusted first-quarter earnings of 42 cents per share, exceeding the analyst estimates of 32 cents per share. Revenue also topped forecasts, while subscribers grew year-over-year, thanks to increased customer engagement with the Tinder app. 

At last check, Match stock was up 7.7% to trade at a fresh record high of $65.07. MTCH is on track for its best single-session gain since Aug. 9, and has extended its year-to-date gain to 48%. And for the last three months, pullbacks found a cushion at the shares' 50-day moving average.

So far, the blowout report has yet to produce any bull notes. They're overdue too, with the majority of analysts in coverage rating MTCH a tepid "hold," and its consensus 12-month price target of $59.29 a discount to last night's closing perch of $60.37. 

Short sellers may be ready to hit the exits now. Short interest rose by 11.8% in the two most recent reporting periods to 18.89 million shares. This accounts for a whopping 36.9% of the stock's total available float, and nearly 13 days' worth of pent-up buying power, at its average pace of trading. 

There could also be an unwinding of pessimism in Match Group's options pits. MTCH's Schaeffer’s put/call open interest ratio (SOIR) of 1.28 sits in the 86th percentile of its annual range, showing a rare put-skew among near-term traders.

 

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