What Happened?
Shares of online dating app Bumble (NASDAQ: BMBL) jumped 23.8% in the afternoon session after the company reported decent first quarter 2025 results which included optimistic EBITDA guidance for next quarter that blew past analysts' expectations. On the other hand, its revenue guidance for next quarter missed. Separately, Bumble named Vivek Sagi as its new Chief Technology Officer, indicating the company's focus on product innovation and AI-led features. Zooming out, we still think this was a decent quarter featuring some areas of strength.
Is now the time to buy Bumble? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Bumble’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Bumble and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 40.8% on the news that the company reported second-quarter earnings results. Its revenue missed Wall Street's estimates, and it severely downgraded its full-year revenue guidance from 9.5% year-on-year growth to 1.5% growth. It also lowered the guidance for full year Bumble App payer net addition to 275,000 to 285,000 (vs. previous guidance of 350,000 to 400,000). The guidance implied negative net adds in Q4, which is not a good sign. Overall, this was a weaker quarter.
Bumble is down 32.5% since the beginning of the year, and at $5.38 per share, it is trading 56.3% below its 52-week high of $12.30 from May 2024. Investors who bought $1,000 worth of Bumble’s shares at the IPO in February 2021 would now be looking at an investment worth $76.52.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
