Bumble Stock to Pullback Towards Record Lows After Bear Note

Watch out for positive sentiment surround to the security to unwind

Jake Scott

Deputy Editor

Sep 27, 2024 at 8:57 AM

BMBL

Shares of online dating firm Bumble Inc (NASDAQ:BMBL) are 2.3% lower before the opening bell, after a bear note from KeyBanc. The Wall Street brokerage downgraded BMBL to "sector weight" from "overweight," citing app store weakness and saying the company is fixing itself when sector-peer Match Group (MTCH) is in recovery.

KeyBanc also noted the possibility of a buyout. "We believe there could be interest in an acquisition. match would be the clear suitor, but we believe there would be regulatory headwinds given the level of industry consolidation implied," the analyst said in its note.

Short-term options traders, meanwhile, have been much more optimistic than usual., and an unwinding of this positive sentiment could add more headwinds. This is per Bumble stock's Schaeffer's put/call open interest ratio (SOIR) that ranks in the 12th annual percentile.

On the charts, BMBL hit an all-time low of $4.80 on Aug. 8, after cutting its annual revenue forecast. While it's been able to claw back some ground, the 30-day moving average continues to cap the equity's upward momentum. Year over year and year to date, Bumble stock is down more than 55%.

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