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Match Group Revenue Growth Hinges on New Features

Calls have been popular in the options pits

Deputy Editor
Sep 22, 2020 at 3:53 PM
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The shares of Match Group Inc (NASDAQ:MTCH) are down 0.7% at $106.08 at last check, though a Match Group spokeswoman told MarketWatch that the recent push from dating app Hinge has the company on track to triple its revenue this year. Taking a cue from its peer Tinder's monetization success, Match Group is looking to add new revenue-generating features to Hinge. Late last week, Morgan Stanley took note of this development, calling Hinge the company's next "growth driver" as it hiked up its price target to $151 from $141. 

Stalling on the charts recently, MTCH is on track for its fourth daily loss in five days. Though the 20-day moving average has appeared to keep a cap on breakouts in the last week, the equity is still up 29.5% year-to-date.

MTCH sep 22

Despite the hindered price action of late, 12 of the 15 analysts in coverage carry a "buy" or better rating on MTCH, with the remaining three at a tepid "hold." Meanwhile, the 12-month consensus price target of $126.89 is a 19.5% premium to current levels. 

The options pits are looking similarly bullish, per Match Group stock's 10-day call/put volume ratio of 5.45 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 92% of readings from the past year, meaning calls are being picked up at a much faster-than-usual rate. 

 

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