Shares of Match Group Inc. are down 1.2% in premarket trading Wednesday after an analyst at Guggenheim downgraded the stock to neutral. Guggenheim’s Jake Fuller wrote that while Tinder Gold, a paid feature launched late last year, brought in a big wave of new paying members, he believes Match will see a “lull” until it introduces its next big paid Tinder feature. “In our experience, multiples for sub-based models can come under pressure in periods of slowing growth,” Fuller wrote. He’s also concerned about Match Group’s valuation, with shares up 40% since the company reported results Feb. 7, compared with a 4% gain for the Nasdaq Composite Index in that time. Fuller prefers IAC/InterActiveCorp , which owns more than 80% of Match Group shares. “While we cannot isolate the discount embedded in IAC for Match, IAC’s current market value does imply a discount of ~16% to the combined value of the Match and ANGI [Homeservices Inc.] stakes,” he wrote.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News