Dating app stocks are among those set to benefit from the winds of change blowing through app store charges, and some analysts are posting new comments on Match Group (MTCH +0.8%) and Bumblebee (BMBL -2.6%).
For one thing, Google has struck a deal with Spotify to allow the music streamer to use its own payment system, rather than Google Play Billing, which could give content apps like streaming services a boost. encounters if they were extended.
Apple has also relaxed its rules as it promised, allowing “reader” apps (usually content apps) to offer sign-up links that point outside of its App Store.
Morgan Stanley notes that while the timing of potential fee changes is unknown, Match and Bumble stand to benefit: “Almost all scenarios are likely to reduce app store fees in the medium to long term,” indicates the company.
It’s not yet factored into dating app stocks, and it presents “strong upside drivers” for the company’s base cases.
Piper Sandler’s Matt Farrell has confirmed his overweight rating on Match Group (MTCH +0.8%) after meeting management. The changes to the App Store are “long-term positives” on the regulatory front, and not only has the war in Ukraine not slowed the expansion of the Hinge app – after an initial shock, Europe expanded also rebounded, according to the firm.
Bumble’s (BMBL) -2.6%) is now trading well below its IPO price, and Seeking Alpha contributor WideAlpha notes that it’s “cheaper but not cheap enough”, pointing to a lack of operating leverage and a poor product market fit.