Seguimiento de Match Group (MTCH)

Match Group (MTCH) – As we mentioned last quarter, we felt that restrictions on large social gatherings would be a tailwind for online dating and MTCH, as singles’ demand to date would not be diminished in a socially distant world.
The company reported a strong Q1’20, with revenue growing 19% y/y ex FX, driven by Tinder Direct’s 31% y/y revenue growth with average subscribers growing 28%. In addition to the strong quarterly growth numbers, the company also noted accelerating engagement levels on the platform and record numbers of messaging and video dates, a positive sign for overall ecosystem health.
In addition, the company completed the spin-off from its parent company IAC on the last day of the quarter, becoming a fully independent company and greatly increasing the liquidity of its equity. As we saw from our days following and owning Blue Buffalo, these events can be counterintuitive for premier, durable growth stories. One
would expect the increase in liquidity (supply) to put pressure on the share price, however, the opposite can occur in these unique situations – due to the over-concentration of assets in the growth fund space. The increased liquidity from the spin in this particular example allows the big funds to build a position, which was not previously possible, so supply of available stocks increases but demand increases to a larger extent and drives up the price, a nice nearterm tailwind for the newly-independent company.