MTCH - Match Group Company Profile
Match Group, Inc. provides dating products. It operates a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, and Pairs. Match Group, Inc. offers its dating products through its Websites and applications in 42 languages approximately in 190 countries. The company was incorporated in 2009 and is headquartered in Dallas, Texas. Match Group, Inc. is a subsidiary of IAC/InterActiveCorp. Company description from FinViz.com.
Match reported earnings on May 8th of 33 cents that easily beat estimates for 19 cents. Revenue rose 36% to $407.4 million and beat estimates of $386 million. Tinder, their leading revenue generator, added 368,000 paying members beating estimates for 355,000. The CEO said the new Facebook dating service should have no impact on Match because Tinder was the driving force behind their earnings and Facebook has no equivalent application. Match is entrenched and has a loyal following.
The CEO reiterated those comments on May 9th. Bank of America reiterated a buy rating with a $46 price target.
Match crashed $13 when Facebook made their announcement on May 1st. I believe the worst is over since the stock has not decline any further in a week. The close Friday was a post crash high.
Earnings August 8th.
Buy Jan $45 Call, currently $4.80, initial stop loss $32.85.
Optional: Sell short Jan $30 put, currently $2.10, stop loss $32.85.
Net debit $2.70.
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