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Jim Cramer Recommends Both Match Group and Rival Bumble, Calling the Latter the ‘Superior Growth Stock’

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Jim Cramer Recommends Both Match Group and Rival Bumble, Calling the Latter the ‘Superior Growth Stock’

After the dating service Bumble made its market debut Thursday, CNBC’s Jim Cramer compared its business performance to its main rival, Match Group, and offered his recommendations on their stocks.

Bumble, which came public with much fanfare to rally more than 63% on its first day, includes the Europe-based Badoo dating site in its umbrella. Match Group, which was spun off last summer from media holding company IAC, has a larger portfolio that includes Tinder, Hinge and OkCupid, among other connection services.

Their businesses, however, should serve different purposes for investors, Cramer said.

“They’re both great companies. I think they’ll have tremendous numbers in the second half, they just fill different roles in your portfolio,” he said on “Mad Money.”

Bumble, which was launched in 2014 by Whitney Wolfe Herd, was priced at $43 before it began trading under the ticker symbol “BMBL.” It held a $13 billion market value at the close with a share price of $70.31. Match Group commanded a market cap of $45.8 billion at the close.

Bumble is the faster grower of the two competitors, based on figures in its S-1 filing. In 2019, the company said total revenues were $488.9 million, up nearly 36% from $360.1 million in 2018. As for the pandemic-plagued year of 2020, Bumble reported total revenues of $416.6 million through the first nine months ending Sept. 30, $40 million of which it said was generated between Jan. 1 and Jan. 28.

When compared with same nine months in 2019, when total revenues came in at $362.6 million, Bumble saw its business grow 15% amid the pandemic.

As for Match Group, the company posted full-year 2020 total revenues of $2.4 billion, which was up 17% from 2019. Its revenues grew 19% in 2019 from 2018, Cramer noted.

“If you’re a growth-oriented investor, Bumble’s the way to go,” Cramer said. “Even after today’s incredible run, it’s the superior growth stock.”

Bumble has a much smaller reach than Match. In its prospectus, Bumble said it had 42 million monthly average users in the third quarter and 2.4 million paying users through September of last year.

Match reported having almost 11 million average subscribers in the fourth quarter of 2020, representing a 12% year-over-year improvement.

Bumble and Match executives are hoping to continue expanding their online dating businesses, with the former building products for platonic matchmaking and networking services.

A key difference between the enterprises is that Match is profitable, while Bumble is still a money-losing enterprise with margins that are improving, Cramer highlighted.

“If you’ve got a more cautious approach to the market and you still want an online dating stock, Match is the way to go,” Cramer said.

Match shares, which closed at a record $172.13 Thursday, are trading at 16 times this year’s sales estimates, a valuation that Cramer said was far too cheap for a company with 17% growth.

Based on FactSet estimates, Match is projected to produce sales of $2.8 billion this year and $3.31 billion in 2022.

“People are paying up [for Match] because they expect the numbers to explode once we reopen,” Cramer said.

Bumble is selling for 17 times sales, he added. The company is forecast to record full-year 2020 sales of $580 million, $723 million in the current year and $897 million in 2022, according to FactSet figures.

“In other words, they look very similar on a price-to-sales basis, even though Bumble’s growing twice as fast as Match,” he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Nigerian Stock Exchange

Karl Toriola, MTN Nigeria CEO, Honoured with NSE Digital Closing Gong on Monday

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Karl O Toriola

Karl Toriola, the Chief Executive Officer of MTN Nigeria Communications Plc, was honoured with the Nigerian Stock Exchange digital Closing Gong.

Mr. Oscar N. Onyema, OON, the CEO, NSE, who spoke at the event, said “On behalf of the National Council and Management of the NSE, I congratulate Mr. Karl Toriola on his appointment as the CEO of MTN Nigeria. Mr. Toriola is a versatile leader who comes with vast knowledge and relevant experience spanning over 25 years, and we are delighted to host him on his first day on the job. At the NSE, we continue to provide a platform to support our clients in meeting their strategic business objectives and we are pleased to see listed companies take full advantage of the NSE’s products and services. I, therefore, use this opportunity to invite MTN Nigeria Plc and other stakeholders to partner with The Exchange across the various themes of capital formation, capacity building, sustainability, and many others.”

On his part, Mr. Toriola commented thus: “I would like to thank the NSE in its entirety for offering me this distinguished honour of ringing the closing bell on the first day of my tenure as CEO of MTN Nigeria. I must also thank the Board, shareholders and staff of MTN Nigeria even as I reflect on the responsibility on my shoulder to lead what is the largest corporate by revenue outside the oil industry and the second-largest corporate listed on the NSE as at today. I am committed to leading MTN Nigeria to deliver on our responsibility to the over 70 million Nigerian customers that use our services to ensure they stay connected and can access increasing value and better services through our network; our role as a corporate citizen in the recovery and growth of the Nigerian economy; and our need to deliver value and drive share price for the good of our shareholders.”

The NSE has continued to remain resilient leveraging various digital platforms and innovative technology to ensure business continuity and uninterrupted dissemination of information to the market.  The investments made by The Exchange in this regard have indeed proven to be worthwhile given the extraordinary times we now live and work. In April last year, NSE launched the digital Closing Gong Ceremony and since then, it has hosted several webinars, virtual events and interactive sessions with esteemed stakeholder groups.

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Nigerian Stock Exchange

NSE Launches e-Filing Portal, X-Filing, to Enhance Securities Listing​​

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Nigerian stock market

The Nigerian Stock Exchange (NSE or The Exchange) is pleased to announce the launch of its e-Filing Portal, X-Filing, on Tuesday, 2 March 2021.

X-Filing, which comes on the back of the recent upgrade to the NSE Issuers’ Portal, X-Issuer, is a fully integrated, secure web interface designed to enable the submission and processing of securities listing applications online.

The Portal provides Dealing Member Firms (DMFs) and other accredited sponsors with a simple, efficient and convenient way to submit securities listing applications on behalf of issuers as well as enable The Exchange to process the applications online, saving time and resources.

Accessible via, https://efiling.nse.com.ng​, the Portal is equipped with features that allow the submission, review, and approval of securities listing applications; generation of listing and application reports; and easy tracking of application status. Users of the Portal will also be able to check estimated listing and application fees and make payment online.

Speaking on the development, the Executive Director, Regulation, NSE, Ms. Tinuade Awe noted thus, “The launch of X-Filing accords with The Exchange’s commitment to leverage technology to drive regulatory objectives and ease compliance for stakeholders. Automating the securities listing process of the NSE is, therefore, a major milestone for us in our quest to ease the burden of listing for applicants and to attract new listings. As an agile Exchange, we continue to review our processes to ensure quick time to market as required by all our stakeholders. We have adopted an integrated approach to ensure a seamless end-to-end process that will allow Issuers to manage their securities listings and other applications from anywhere they choose at any time.”

X-Filing is expected to facilitate a timely review process from The Exchange, ultimately improving the quality of its service delivery. “The Portal has been designed to enhance our securities listing application processes, thereby improving Issuers’ experience. We are, therefore, confident that the features we have incorporated will enhance the competitiveness of the Nigerian capital market as a global listing destination,” Ms. Awe further stated.

The Exchange remains committed to delivering products and services that meet the needs of its stakeholders, especially as we transition to a world of increased digital interactions. X-Filing is one of The Exchange’s dedicated efforts to remain globally competitive while enhancing its service delivery to stakeholders.

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Nigerian Stock Exchange

Transactions on Nigerian Stock Exchange Declined by 13.7 Percent to N232.5 billion in January 2021

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Nigerian stock market

Transactions on Nigerian Stock Exchange Declined by 13.7 Percent to N232.5 billion in January 2021

The total transactions performed by both foreign and local investors at the Nigerian Stock Exchange (NSE) in January 2021 declined by 13.66 percent from N269.24 billion recorded in December 2020 to N232.46 billion.

The bourse stated in its monthly report titled ‘The Nigerian Stock Exchange’s Domestic & Foreign Portfolio Investment Report.’

A breakdown of the report showed foreign investors’ total transactions stood at N47.52 billion or 20.44 percent of the total transactions performed in the month of January, below the N70.32 billion or 29.86 percent recorded in the same month of 2020.

While domestic transactions accounted for N184.94 billion or 79.56 percent, higher than the N165.14 billion or 70.14 percent posted in the corresponding month of 2020.

Foreign inflow stood at N16.73 billion in January 2021, again below the N23.82 billion recorded in January 2020. However, a total of N30.79 billion was withdrawn by foreign investors from the Exchange in the month under review.

Domestic retail investors dumped N67.44 billion on Nigerian assets in January 2021 while domestic institutional investors invested N117.50 billion.

According to the Exchange, the “total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period.”

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