What Happened?

Shares of online dating app Bumble (NASDAQ: BMBL) jumped 3.1% in the morning session after stronger-than-expected U.S. retail sales data pointed to a resilient consumer, lifting sentiment for consumer-focused stocks. 

The dating app operator's stock rose in a broad rally for consumer discretionary companies after a key economic report eased recession fears. The Commerce Department reported that U.S. retail sales jumped 0.6% in June. This report suggests that consumer spending, a critical pillar of the U.S. economy, remains robust. For a company like Bumble, whose revenue relies on users paying for subscriptions and premium features, signs of a confident consumer are a major positive. When people feel financially secure, they are more likely to spend on non-essential or "discretionary" services, including dating apps. 

Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.

The shares closed the day at $6.91, up 0.4% from previous close.

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What Is The Market Telling Us

Bumble’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 22 days ago when the stock gained 17.2% on the news that the company announced a major restructuring plan that includes laying off approximately 30% of its global workforce and raising its financial outlook for the second quarter. 

The dating app company stated the move, which will affect about 240 employees, was part of an effort to realign its structure and focus on strategic priorities. 

Investors reacted positively to the significant cost-saving measures, which are expected to result in up to $40 million in annual savings. In conjunction with the layoffs, Bumble boosted its second-quarter forecast. The company guided for revenue between $244 million and $249 million, up from a prior range of $235 million to $243 million. Adjusted EBITDA was also projected to be higher, anticipated between $88 million and $93 million. This combination of aggressive cost-cutting and improved guidance signaled to investors a renewed focus on profitability and operational efficiency.

Bumble is down 13.2% since the beginning of the year, and at $6.92 per share, it is trading 26.5% below its 52-week high of $9.42 from July 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 $98.42.

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