Bumble Stock: Is It a Good Buy Now as Dating Apps Take Off for Post-Pandemic Singles?
Bumble made its initial public offering in February 2021 — nearly a year into the coronavirus pandemic. Mere months later, as the collective vaccination rate rises and people begin heading out of their homes, dating is top-of-mind for many.
Now, as Bumble’s ready for romance to evolve in the post-pandemic era, investors are wondering whether Bumble’s stock price will benefit from the projected return to dating? It looks very possible on both fronts.
The Changing Landscape of Dating After a Pandemic
What will dating look like post-pandemic? Many feel that it may be a moving target for a while, and what it looks like six months to a year out may evolve.
To be sure, the team at Bumble turned to experts in the field for insight. Here’s what emerged during that conversation as well as a look at one competitor’s research on dating post-pandemic.
In-App Calls and Video
Like it or not, the coronavirus got us accustomed to being on video. Odds are that’s likely to continue across aspects of our existence, including our dating lives. That’s good news for Bumble, which debuted in-app calling and video chats before the pandemic.
Honesty and Transparency
Another aspect of pandemic life is that we all arrived at a new level of awareness about each other. People introduced themselves to one another via video. The world was given a glimpse into the homes and everyday lives of celebrities and public figures.
Hiding the toughest of days became more difficult as parents were forced to juggle work and life. The sentiments people from all walks of life faced–heightened anxiety, frustration, loneliness, depression — took their toll. Perhaps it’s no surprise that increased candor is one of the predictions for post-pandemic dating.
Dating With Intention
One of Bumble’s competitors, Hinge, recently produced some research indicating that two of every three Hinge users would like to date differently than they did before the pandemic. Half said they no longer pursue people who aren’t interested in them. One in three users feels a heightened sense of urgency to find a new relationship, compared to the beginning of the pandemic.
Less Traditional Dates
Pandemic life showed us how to have a social life without heading to a restaurant or bar. People were outside more, enjoying walks, hikes and picnics. Expect that trend to find its way into dating life.
How Is Bumble Positioned for Dating Post-Pandemic?
Bumble had become an industry leader by the time the pandemic hit. Despite the new social limitations, Bumble, which has been fostering social connections since its launch in 2014, continued undertaking new initiatives. During the coronavirus pandemic, Bumble grew its user base, rolled out a new feature, began executing on a physical presence and took a notable step toward employee culture and retention. These efforts are likely to add value for both the company and its shareholders.
Nearly 3 Million Paying Users
In 2021’s first quarter, Bumble reported that it had 2.8 million paying users — a 30% year-over-year increase. Average revenue per paying user had risen by 12%, compared to 2020.
In-Home Date Night Options
Earlier this year, Bumble rolled out a new feature called Night In for users in the U.S. and Canada. With Night In, users can play a game, such as ask and answer trivia questions. Night In is an add-on to Bumble’s video date feature, which made its debut in 2019.
Bumble reports that its voice and video calling capabilities have been utilized 70% more since the pandemic began — a key indication that Bumble had a handle on key functionality and had taken steps to position itself for growth by the time the COVID-19 pandemic struck.
An Eye on Company Culture
Bumble recently gave its employees a week off as a way to help ward against the burnout that many have been experiencing lately — a sign that the company has an eye on its work culture.
A Brick-and-Mortar Presence Launching Soon
Until now, Bumble has orchestrated Bumble Hive pop-up spaces to help foster real-life connections. On July 24, 2021, the company will take those efforts to the next level by opening Bumble Brew in New York City, a cross between a café, restaurant and wine bar.
Good To Know
Although Bumble is best-known as a dating app, it offers more than the opportunity to pursue romance. Bumble BFF is “a simplified way to create meaningful friendships,” per its website. Bumble Bizz is the career networking version, allowing professionals to connect, share and learn from each other.
Should You Buy, Sell or Hold Bumble Stock?
As of July 16, 2021, Bumble’s stock price is $49.09 per share and down -0.93%. Zacks stock-rating service currently ranks Bumble as a hold. However, according to CNN Business, a poll of 16 investment analysts indicated that the stock is currently a buy.
Overall, Bumble seems to be managing its business effectively and pursuing expansion to serve its users in real life, outside of the app. That expansion, combined with the anticipated return of dating life post-pandemic, may give interested investors the nerve to take Bumble’s stock for a spin.
A Growing Company of Ideals, Mapped to a Busy Future
One distinguishing characteristic about Bumble is the future that its founder has long had in mind. Whitney Wolfe Herd, the company’s CEO, grew up entranced by Walt Disney — not because she dealt in princesses and fairy tales, but because of her ability to build a world that transports the consumer into a distinct vision.
Wolfe Herd seems to care about the environment she creates, as evidenced by the more than 880,000 guideline violations that Bumble reported in 2020. Artificial intelligence software is always working to clean up the app, scanning for potential ethics violations and attempting to stop them before they happen.
Wolfe Herd has set out to embody the change she wants to see — in the dating world, business world and real world. Investors eager to back her efforts could be in for an interesting, fulfilling ride.
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- CNBC. 2021. "Dating App Bumble Gives Workers the Week off To Recover From Burnout.."
- Engagdet. 2021. "Bumble Is Opening a Restaurant To Help People Date IRL."
- The Verge. 2021. "Bumble’s New Night in Feature Is an Attempt to Break the Ice on Virtual Dates."
- CNNMoney. "BMBL - Bumble Inc Forecast."
- Time. 2021. "How Whitney Wolfe Herd Made Bumble a Billion-Dollar Brand."