Huge Short Position On Match Group Is Growing Ahead Of Earnings

Oct. 31, 2019 11:41 AM ETMatch Group, Inc. (MTCH)25 Comments
Rick Pendergraft profile picture
Rick Pendergraft


  • Match Group is set to report earnings after the closing bell on Tuesday.
  • Analysts expect the company to see modest earnings growth but bigger revenue growth.
  • The stock has gained almost 350% over the past two and a half years.
  • Sentiment toward the stock is rather pessimistic.
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Online dating service provider Match Group (NASDAQ:MTCH) is set to report earnings after the close on Tuesday. The company is expected to report earnings of $0.42 per share on revenue of $540.57 million. Those figures will be compared to EPS of $0.39 last year on revenue of $443.94 million. The EPS estimate would represent growth of 7.7% and the revenue estimate, if accurate, would represent growth of 21.8%.

The revenue growth is in line with what we have seen out of the company over the last few years. Match has averaged revenue growth of 23% per year over the last three years and revenue was up by 18% in the second quarter. Earnings growth has averaged 39% per year for the last three years, but the EPS was only up by 2% in the second quarter.

Analysts expect earnings to grow by 18% for 2019 as a whole while revenue is expected to grow by 19.2% for the year.

Match has incredibly strong management efficiency measurements with a return on equity of 138.8% and a profit margin of 31.1%.

The overall fundamental picture for Match Group is strong and the company garners high ratings from Investor’s Business Daily. The EPS rating is a 90, the SMR rating (Sales growth, profit margin, and return on equity) is an A, and the overall Composite Rating is a 90.

The Stock Is Up 346% Since Mid 2017

The price performance for Match Group matches the fundamentals. In mid-2017, the stock was trading in the $16.50 range and it closed at $73.73 on October 30. That is a gain of almost 350% in the last few years. The stock is up over 100% since the low last November.


The stock has pulled back over the last two and a half months, otherwise we would be

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This article was written by

Rick Pendergraft profile picture
Rick Pendergraft is a Senior Editor on the Opinion & Analysis team at Seeking Alpha. Prior to joining Seeking Alpha, he studied, traded, analyzed, and wrote about the investment markets for over 30 years. He has worked for some of the largest financial publishers in the world and he has been quoted in the Wall Street Journal, USA Today, the New York Times and the Washington Post. In addition, he has been interviewed on Bloomberg, CNBC and Fox Business News. After starting college as an education major, wanting to teach economics, Rick eventually changed to majoring in Economics and received a Bachelor of Science in Economics from Wright State University. His desire to inform and educate people is at the heart of his writing.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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