Investors looking for a bargain in technology stocks may consider two firms for different reasons. Online dating firm Match Group (MTCH), whose stock price is on a downtrend, is due for a shakeup.
A second activist reportedly built a sizable stake in MTCH stock. Activist investor Anson Funds Management LP may try to shake up Match’s board of directors. The firm manages nearly $2 billion in assets.
Elliot Management holds a commanding $1 billion stake in Match.
Match runs a mature software model, with Tinder as its main source of revenue. However, its high subscription rate does not appeal to its mostly male audience amid inflationary pressures. In addition, dating sites are known for having too many spam accounts.
MTCH stock has a good growth and profitability profile. Its stock momentum and valuation are fair.
Adobe (ADBE) lost 11.5% of its value in the last week after posting results. The stock is at levels not seen since Nov. 2023.
The firm has a strategy to unleash creativity for its customers. It will accelerate document productivity and empower businesses with digitalization.
Investors dumped the stock on disappointment over the pace of the generative AI innovation. They want to see subscription growth in Adobe Photoshop, Illustrator, and Express accelerate.
Once customers buy a combination of solutions – Express, Firefly, Creative Cloud, and Acrobat – margins will expand.
ADBE stock has a poor value price at this time with a 27 times forward P/E. It is profitable and has strong growth prospects.
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