Supply chain disruptions and high crude oil prices have increased inflation risks. the The consumer price index rose 6.8% in November, and it could increase further. On the other hand, the Federal Reserve doubled taper rate and expects three rate hikes Next year.
The possible impact of the increase in omicron’s COVID-19 cases on the economic recovery could lead to further market volatility. However, JPMorgan analyst Doug Anmuth recently said e-commerce and subscription names are preferred, given the loosening of compositions, re-accelerating growth and an overall operating environment. more favorable.
Anmuth’s favorite internet choices for small and mid caps are Match Group, Inc. (MTCH) and Bumble Inc. (BMBL). He expects both stocks to recover in 2022 as the economy continues to recover.
Match Group, Inc. (MTCH)
Match Group, Inc. provides dating products worldwide. The company’s brand portfolio includes Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, OurTime and various other brands.
On December 14, 2021, MTCH announced that its operations would be carbon neutral by March 2022 following the purchase of offsets that effectively make the company’s operations carbon neutral, from year 2021 until ‘in the following two years. With this purchase, based on projected greenhouse gas emissions, the company commits to offsetting its societal footprint for each year to come.
MTCH’s total revenue increased 25% year-on-year to $ 802 million for the fiscal third quarter ended September 30, 2021. EBITDA grew 1.5 percent year-on-year to $ 54.50 million, while its total assets stood at $ 4.89 billion, a 60.6 percent year-on-year decline.
MTCH’s EPS is expected to increase 298% year-on-year to $ 1.95 in fiscal 2021. Company revenue is expected to increase 29.1% year-on-year to $ 839.79 million dollars for the quarter ending March 31, 2022. Wall Street analysts expect that to hit $ 169.43 in the near term, indicating a upside potential of 31%.
Bumble Inc. (BMBL)
BMBL provides online dating and social media platforms internationally. She owns and operates websites and apps that offer subscription and credit dating products. The company operates two apps, Bumble and Badoo, with around 40 million users every month.
On November 11, 2021, Whitney Wolfe Herd, Founder and CEO of BMBL, said: “We believe we are well positioned for the fourth quarter, given our continued product and market leadership combined with the operational leverage of our structure. costs. Based on these factors, we are raising our outlook for the year 2021 in terms of revenue and adjusted EBITDA. “
BMBL’s total revenue increased 24% year-on-year to $ 201 million for the fiscal third quarter ended September 30, 2021. The company’s adjusted EBITDA increased 15% year-on-year to reach $ 285 million. In addition, total liabilities stood at $ 1.29 billion, down 17.2% year-over-year.
Analysts expect MTCH’s EPS and revenue to grow 3,380% and 41.6% year-on-year to $ 1.64 million and $ 767.90 million, respectively, in fiscal 2021. Wall Street analysts expect the stock to hit $ 75 in the near term, indicating a upside potential of 64.2%.
MTCH shares were trading at $ 131.30 a share on Tuesday afternoon, up $ 5.46 (+ 4.34%). Year-to-date, the MTCH has fallen -13.16%, compared to a 24.95% increase in the benchmark S&P 500 over the same period.
About the Author: Nimesh Jaiswal
Nimesh Jaiswal’s a passionate interest in the analysis and interpretation of financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach he takes while advising investors in his articles. Following…