Tinder CEO Departure, Dismal Q3 Results Sink Match Stock

The company posted a surprise loss for its fiscal third-quarter

Digital Content Manager
Aug 3, 2022 at 9:33 AM
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The shares of Match Group Inc (NASDAQ:MTCH) are down 20.5% at $61 this morning, following the online dating company's fiscal third-quarter earnings report. Last night after the close, Match posted a surprise loss of 11 cents per share for the quarter, which was much lower than the 53 cents per share profit expected by analysts, and marks a massive drop from last year's profits of 57 cents per share. The firm also reported lower-than-expected revenue of $794.51 million, and shared a revenue forecast that missed the mark. Separately, the head of the company's Tinder unit, Renate Nyborg, announced her departure on Tuesday. This marks the company's sixth CEO to resign from the company since its founding in 2012. 

The stock is set to add on to its 42% year-to-date deficit, with today's plummet putting MTCH at its lowest level since April 2020. The stock has struggled with pressure at its 80-day moving average, which stopped a pre-earnings rally in its tracks during yesterday's session. 

Following the news, Jefferies cut its price target to $90 from $100. More bear notes could be on the way, as the 12-month consensus price target of $107.05 is a strong 39.6% premium to last night's close. Plus, all but one of the 15 analysts in coverage call the stock a "buy" or better. 

Options traders, on the other hand, took a much more bearish stance ahead of earnings. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 10-day put/call volume ratio of 1.31, which sits in the 80th annual percentile. This implies puts are being picked up at a quicker-than-usual clip. 

Further, the security's Schaeffer's put/call open interest ratio (SOIR) of 1.05 sits higher than 67% of readings from the past 12 months. In other words, these short-term traders are more put-biased than usual right now. 

 

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