Bumble stock up after JPMorgan note. Analyst surprised by workforce reduction, but raised revenue outlook despite declining downloads and stagnant users.
Shares of online dating app Bumble (NASDAQ:BMBL)
jumped 17.2% in the morning session after the company announced a major restructuring plan that includes laying off approximately 30% of its global workforce and raising its financial outlook for the second quarter.
Bumble Inc approved reducing global workforce by 30%. Expects to incur non-recurring charges of $13-18 million and achieve $40 million in annual cost savings. Stock up 17%.
Bumble expects the reduction in headcount to generate up to $40 million in annual cost savings but estimates that the restructuring will result in $13 million to $18 million in non-recurring charges.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Shares of online dating app Bumble (NASDAQ:BMBL)
jumped 5% in the morning session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes.
This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
Online dating app Bumble (NASDAQ:BMBL) met Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 7.7% year on year to $247.1 million. On the other hand, next quarter’s revenue guidance of $239 million was less impressive, coming in 1.8% below analysts’ estimates. Its non-GAAP profit of $0.22 per share was 40% below analysts’ consensus estimates.
JP Morgan analyst names Take-Two Interactive and Xometry as top picks in internet SMID & video games sectors. Potential for relief for Match Group & Bumble from App Store ruling. Specific opportunities & dislocations highlighted, including Roku & Xometry.
Shares of online dating app Bumble (NASDAQ:BMBL)
fell 5.2% in the morning session after JP Morgan downgraded the stock from Neutral to Sell and assigned a $5 price target, implying a potential 10% downside. The downgrade was attributed to challenges in the dating app market, particularly concerning "Gen Z product and market fit issues." The firm also raised concerns about competition from Hinge.
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer subscription industry, including Bumble (NASDAQ:BMBL) and its peers.
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums).
That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
Unprofitable companies face headwinds as they struggle to keep operating expenses under control.
Some may be investing heavily, but the majority fail to convert spending into sustainable growth.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
