Match Group (NASDAQ:MTCH) is a Dallas-based company that provides dating services to a worldwide client base. Some of the dating services it owns include well-known applications like Tinder, Hinge, as well as websites like Plenty of Fish and OkCupid. Shares of Match have dipped marginally month-over-month as of close on Wednesday, August 30. Meanwhile, the stock is still up 12% so far in 2023.
Canadian investors should seek exposure to this burgeoning market. Indeed, most couples now meet through online dating services. Grand View Research recently valued the global online dating market at US$9.65 billion in 2022. Meanwhile, it projects that this market will register a compound annual growth rate (CAGR) of 7.4% from 2023 through to 2030.
This company released its second quarter (Q2) fiscal 2023 earnings on August 1. Total revenue increased 4% year-over-year to $830 million. Tinder, Match’s top app, once again powered its results and posted direct revenue growth of 6% while the Hinge app reported direct revenue growth of 35%.
Match Group also offers investors exposure to artificial intelligence (AI) development. Indeed, the company already has “extensive experience” in AI with its Tinder app, which utilizes AI in its matchmaking algorithms, merchandising, and trust and safety efforts since 2019.
Shares of Match are trading in favourable value territory compared to its industry peers at the time of this writing. Meanwhile, the company is on track for very strong earnings growth in the years ahead.
