Everyone knows what Tinder is nowadays. This dating app lets users make a selection by swiping left or right. When two people both to find the other interesting then this is a match and you can get in touch with each other. The fact that everyone knows Tinder is quite special for a dating app. It indicates how popular Tinder is.
You can take advantage of this popularity by investing in Tinder. The company behind the app, Match Group, has been listed on the stock exchange since the end of 2015. The stocks can be bought through the NASDAQ exchange. However, it is also possible to invest in Tinder CFDs. In the following article we tell you more about your options for investing in Tinder.
Match Group stocks
The company behind Tinder is Match Group Inc. They are also the owner and creator of OkCupid and Match.com. By investing in this company you are thus focussing yourself on the online dating market. Tinder is the largest part of the company and will therefore also exert the most influence on the value of the stock. The latest revenue and profit figures that were announced were very positive. In 2014, for example, the company already generated 888 million in revenues before the IPO and they made 148 million in profit.
Worldwide there are 59 million active users of the app. In the Netherlands this number is 1.2 million people. These users can use the app for free, but they can also take out a subscription to activate additional functionalities. The price for a subscription can be $1.99 to $19 per month. The favourable quarterly figures make an investment in Tinder an interesting option for earning money.
Development since IPO
The revenue and profit figures are much more impressive when you realize that the company has only existed since September 2012. It was not until the fourth quarter of 2015 that the company behind Tinder went public. The stocks were traded on the first day for a price of $12 each. At the time of writing, the current value has risen to $40 per stock.
After the introduction of the Tinder stocks on the stock exchange, the stock price dropped at first. Ultimately, investors must have thought that at the new lower price it was worth investing in the longer term. This has meant that the price has risen steadily in recent years.
For Tinder stocks you can also use a CFD (contract for difference). This can be an interesting option because the price of the stock fluctuates. These rapid increases and decreases in the stock price offer opportunities for investors. You must of course be able to reasonably predict what causes the rise or fall of the stock.
Online dating is a market in which a lot can happen. An advantage that you can use is that this news will not always be picked up immediately by financial magazines. For example, you may get the tip that a new trend is causing people to start using a totally different app in place of Tinder. Such a change would mean that you can expect a decrease in the Tinder stock.