Entering text into the input field will update the search result below

Match Group: Look For Love When The Market Crashes

Mar. 03, 2020 4:42 AM ETMatch Group, Inc. (MTCH)
Vishesh Raisinghani profile picture
Vishesh Raisinghani


  • Match Group's business model seems resilient to economic slowdowns.
  • The stock is down less than the Nasdaq and S&P 500 over the past week.
  • It currently trades at fair multiples and deserves a closer look.
  • Looking for a portfolio of ideas like this one? Members of Betting On Tomorrow get exclusive access to our model portfolio. Get started today »

Online dating platforms have the perfect combination of attractive financial ingredients. They're capital-light, comfortably profitable and easy to monetize. Newer platforms like Tinder are clearly riding a demographic wave that could stretch for decades.

Fortunately, the biggest and best dating platforms are owned by the same company: Match Group (NASDAQ:MTCH). Best of all, the company's niche business could actually be immune to business cycles. Let's take a closer look.

The economics of love

Last year, a Stanford sociologist found that online dating had become the most popular way U.S. couples connect. One out of every five couples now meet online.

(Source: Visual Capitalist)

A few other statistics about this market piqued my interest further:

  • 49.7 million Americans, of the 54.4 million estimated singles in the country, have tried online dating. That’s nearly full adoption!

  • 80% of people on Tinder say they want to find serious dates

  • Dating app customers spend an average of $243 a year to find their matches. Many believe it’s still cheaper than meeting someone offline.

  • An estimated 240 million people are using dating apps across the world, and total global sales are estimated to reach $2.1 billion this year alone (up 9.3% from 2019).

Despite these encouraging statistics, launching a successful dating app over the past twenty years has been anything but easy.

Boulevard of heartbreaks

Online dating is a segment of the internet economy where the rules seem inverted. Instead of winner-take-all dynamics and ad-based revenue, the dating app market is saturated with players trying to reach every niche imaginable and serve users willing to pay.

Users are spoilt for choice. Whether you’re looking for a Star Trek nerd, men with beards or a literal clown, there’s a legitimate dating app for that. There’s an estimated 8,000 dating sites in the world: 2,500

Members of my private investing community, Betting on Tomorrow, get weekly tech analysis, model portfolios, and a Hype Index to track the maturity of emerging tech sectors. Get started today >>

This article was written by

Vishesh Raisinghani profile picture
Founder at Sharpe Ascension Inc. - a content marketing agency for financial and technology firms.Researcher, Content Creator, Financial Writer, Consultant., PizzatarianCollaborating with Seeking Alpha contributor Growth At A Good PriceFind me on Twitter @Visheshrr or send me an email if you'd like to work together.

Analyst’s 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You


Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.