Kim Bolton Match Group MTCH-Q PAST TOP PICK Aug 03, 2022

Online leader in dating space, owning the top 4 sites in North America. Subscription based online dating sites. 44 brands around the world, in 190 countries. Half their revenues come from the US. Asia is one of its largest markets. Meeting online has surpassed meeting through friends. 17% growth rate. A bit of a premium. Good long-term secular growth story. No dividend. (Analysts’ price target is $90.24)

(A Top Pick Sep 11/19, Up 43%) Online dating provider. 10M paid subscribers. 4 of the 5 largest brands in North America. Pandemic has created an additional catalyst. Secular growth area. 20% earnings and 15% revenue growth rate.

The online dating king, and he predicts 2021 will give 1967's the Summer of Love a run for its money as we leave lockdowns behind. He expects great numbers from them in three weeks. He's long liked this. Last year, Match got slashed in half during lockdowns around the world. It reacted by introducing Virtual Dates online which performed well. This spring, the stock fell out of fashion, but has come back in the past four week. It's very well run. It saw 12% subscriber growth in 2020 despite Covid. Saw 23% revenue growth YOY as of last May's report, 12% subscriber growth and 38% operating income growth. They also bought a South Korean video channel, Hyper Connect, that will enhance their revenues and worldwide reach in Asia.

The recent quarter wasn't as bad as sellers said. The company is worthwhile. He has long liked it.

One of the most powerful secular trends he can think of right now. With vaccinations, online dating is due for a huge upswing. Trades at 11x forward earnings. Just bought Korean company which should increase their addressable market. Buy partial positions at $160, 140, and 120. No dividend. (Analysts’ price target is $171.00)

PE is about 30x. Viewed as a tech growth darling, and the multiples have really contracted. Still not all that cheap, middle of the pack. Mediocre value, very negative trend, and negative volatility in a pretty strong downtrend. Until one of those things changes, it stays on the short side.