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Bumble - AI Stock Analysis
Analysis generated November 22, 2024
Bumble Inc. is a leading online dating platform that enables users to connect and build meaningful relationships. Founded by Whitney Wolfe Herd in 2014, Bumble differentiates itself with a unique approach where women make the first move in heterosexual matches. The company operates several dating apps including Bumble, Badoo, and others. Despite its innovative approach, Bumble faces intense competition from other dating platforms like Tinder, Match.com, and OKCupid.
Fundamental Analysis
Bumble’s revenue for the last quarter was $274 million, reflecting a 1.86% increase compared to the prior quarter, which is a positive sign of short-term growth. However, this represents a 0.69% decrease compared to the same quarter last year, which may be a long-term concern. The net income for the last quarter was $613 million, a significant decrease of 2,338.36% from the previous quarter and 3,778.24% from the same quarter last year. This sharp decline in net income is alarming and suggests the company is struggling with profitability.
The EBITDA for the last quarter was $820 million, which is down 1,288.60% from the previous quarter and 1,839.71% from the same quarter last year, raising further concerns about the company’s operational efficiency. Bumble’s current Price to Earnings (P/E) ratio stands at 22.97, which is within a normal range, suggesting that the stock is neither particularly overvalued nor undervalued based on earnings.
Technical Analysis
Today's stock price of $7.99 is up 10.51% over the past month, indicating a positive short-term trend. However, the stock has declined 43.65% over the past year, which could signal long-term concerns. The bearish trend is corroborated by the current Simple Moving Average (SMA10) of $7.95, which is lower than the previous $8.01, indicating a potential downward trend in price movement. The Relative Strength Index (RSI) is at 49.3, indicating a neutral condition, suggesting neither overbought nor oversold market conditions.
Alternative Data Analysis
On the employment front, Bumble has 43 open positions, which is up by 34% in the last couple of months, indicating potential growth and expansion. However, only 25% of employees have a positive business outlook, which is down by 7% in recent months, reflecting a deteriorating internal sentiment.
Regarding customer acquisition, Bumble had an estimated 16 million visitors to their webpage, down by 5% in the last couple of months. The number of downloads of Bumble’s mobile apps is estimated at 45,000 per day, down by 6% in the past couple of months, which could indicate waning customer interest. On social media, Bumble has 580,000 followers on Instagram and 64,000 followers on Twitter, with no meaningful increase or decrease recently. The AI score from AltIndex is 21, signaling a strong sell recommendation.
Conclusion
In conclusion, Bumble Inc. shows mixed signs across different dimensions of analysis. The company has seen some short-term revenue growth, yet is struggling with declining net income and EBITDA, indicating potential operational inefficiencies. The stock price trend is bullish in the short term but concerning in the long term. Additionally, alternative data paints a worrying picture regarding employee sentiment and customer acquisition. Given these mixed signals and especially the strongly concerning AI score, a cautious approach is recommended for investing in Bumble’s stock at this stage.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
