Why Is Bumble (BMBL) Stock Rising Today? By Stock Story

Bumble Stock Sees Significant Morning Surge

Overview:
Shares of Bumble, the popular online dating app, rose by 6.77% during the morning session after Loop Capital upgraded its rating from Hold to Buy, setting a price target of $18. This target suggests an 18% potential upside from the trading price at the time of the upgrade. Following this initial spike, the stock settled at $15.11, which is a 4.35% increase from the previous close.

Market Analysis:
The stock’s volatility is notable, with Bumble exhibiting over 34 movements greater than 5% within the past year. Today’s increase appears to signal that the market views this news as significant but not transformative in its outlook on the company’s fundamentals.

The most substantial movement in recent history occurred five months ago when the stock dipped by 7.31% after the company reported first-quarter results. Although Bumble’s revenue and paying users numbers slightly exceeded analysts’ expectations, it fell short in free cash flow, and its revenue and adjusted EBITDA guidance for the upcoming quarter were below consensus estimates. However, management expressed optimism regarding the company’s momentum and its ability to maintain profitable growth. It’s also important to mention that investor sentiment had been tempered before this quarter, attributed to a secondary offering that dampened enthusiasm about payer growth. This mixed quarter was nonetheless perceived as "better-than-feared."

Historical Performance:
Bumble has seen a decline of 26.1% since the start of the year, and with shares priced at $15.11, they are trading 45.8% below their 52-week high of $27.86 reached in February 2023. For context, an investment of $1,000 in Bumble’s stock at its IPO in February 2021 would now be valued at only $214.85.