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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.

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Nigerian Stock Exchange

Nigerian Stock Market Gains N27 Billion on Monday

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Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) opened the week in green as more stocks extended their gains on Monday.

Market value of all listed stocks rose by N27 billion from N21.794 trillion it closed on Friday to N21.821 trillion on Monday. While the NSE All-Share Index appreciated by 0.12 percent to 41,814.74 index points, up from 41,763.26 index points it closed on Friday.

Investors traded 674,498,620 shares worth N7.591 billion in 5,432 transactions during the trading hours of Monday.

PZ led gainers with N0.55 or 9.32 percent to close at N6.45 per share. This was followed by Mutual Benefits Assurance Plc with N0.02 or 7.14 percent to settle at N0.30 a unit. See other details below.

Top Five Gainers

Symbols Last Close Current Change %Change
PZ N 5.90 N 6.45 0.55 9.32 %
MBENEFIT N 0.28 N 0.30 0.02 7.14 %
UNILEVER N 14.50 N 15.50 1.00 6.90 %
MANSARD N 2.31 N 2.46 0.15 6.49 %
CUTIX N 6.05 N 6.40 0.35 5.79 %

Top Five Losers 

Symbols Last Close Current Change %Change
ABBEYBDS N 0.95 N 0.86 -0.09 -9.47 %
PRESTIGE N 0.47 N 0.43 -0.04 -8.51 %
REGALINS N 0.41 N 0.38 -0.03 -7.32 %
CILEASING N 4.70 N 4.40 -0.30 -6.38 %
NGXGROUP N 22.00 N 20.60 -1.40 -6.36 %

Top Five Trades

Symbols Volume Value
FBNH 350541622.00 4345726068.70
ETI 45642660.00 347799322.85
UNIVINSURE 33914599.00 6782919.80
TRANSCORP 32576994.00 33205137.68
GTCO 21476241.00 614370055.60

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Dividends

Nestle Nigeria Declares N25 Interim Dividend for the Period Ended September 30, 2021

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Dividend - Investors King

Shareholders of Nestle Nigeria Plc would be currently smiling to the bank as the company announced an interim dividend of N25 per 50 Kobo ordinary share, subject to withholding tax, to shareholders whose names appear on the register of members as at the close of business on 19 November 2021.

Going by the company’s outstanding shares of 792,656,252, the amount translates to N19.816 billion.

The register of members would be closed from 22 November 2021 to 26 November 2021. On 6 December 2021, the dividend would be paid electronically to shareholders whose names appear on the register of members on 19 November 2021 and who have completed the e-dividend registration and mandated the registrars to pay their dividends directly into their bank accounts. The registrar of Nestle Nigeria Plc is Greenwich Registrars and Data Solutions Limited.

This comes as Nestle reported a 23 percent increase in revenue for the period, N261 billion was earned in the period ended September 2021 compared to N212 billion in the period ended September 2020. The company has two reporting segments, Food which includes the production and sale of Maggi, Cerelac, Nan, Lactogen, and Golden Morn and Beverages which includes the production and sale of Milo, Chocomilo, Nescafe, Milo ready-to-drink (RTD), and Nestle Pure Life. The Food segment reported a revenue of N154 billion while the Beverages segment reported a revenue of N107 billion during the period. N258 Billion of revenue was earned in Nigeria and N3 Billion was earned from exports to other countries.

Cost of sales, however, rose from N122 billion in the year ending September 2020 to N160 Billion in September 2021 and this saw profit for the period rise slightly by 5% from N31 Billion to N33 Billion. Earnings per share rose from N40.29 in 2020 to N42.37 in 2021.

Nestle Nigeria Plc is one of the largest food and beverage companies in Africa. For over 57 years, Nestle has been delighting consumers in Nigeria with high-quality nutritious food products. Nestle has a staff strength of over 2,300 direct employees, 3 manufacturing sites, and a head office in Lagos and produces several iconic brands in Nigeria.

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Nigerian Stock Exchange

Nigerian Exchange Group Leads Gainers as Stock Investors Gained N169 Billion Last Week

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Stock bull - Investors King

The stock price of the Nigerian Exchange Group extended its bullish run to N22 per share last week, representing an increase of 23.95 percent when compared to its N17.75 per share opening price.

During the four trading days week (Eid-iL-Maulud Holiday), investors traded a total of 1.565 billion shares worth N18.384 billion in 21,621 deals, in contrast to a total of 2.838 billion shares valued at N31.653 billion that exchanged hands in 23,355 deals in the previous week.

In terms of the volume traded, the financial service industry led the activity chart with 1.179 billion shares valued at N12.746 billion traded in 13,272 transactions. Therefore, contributing 75.38 percent and 69.33 percent to the total equity turnover volume and value, respectively.

The ICT Industry followed with 131.585 million shares worth N2.151 billion in 636 deals. In third place was Conglomerates Industry, with a turnover of 110.828 million shares worth N 262.227 million in 928 deals.

FBN Holdings Plc, E-Tranzact International Plc and Access Bank Plc were the most traded equities, accounting for 626.888 million shares worth N6.303 billion in 3,677 deals. The three contributed 40.07 percent and 34.29 percent to the total equity turnover volume and value, respectively.

The market value of listed equities gained 0.78 percent or N163 billion from N21.625 trillion in the previous week to N21.794 trillion last week. The NGX All-Share Index also appreciated by 0.78 percent or 325.11 index points to close the week at 41,763.26 index points, up from 41,763.26 index points.

However, all other indices finished lower with the exception of NGX Main Board, NGX 30, NGX Banking, NGX Oil/Gas, NGX Industrial Goods and NGX Sovereign Bond indices which appreciated by 1.64 percent, 0.80 percent, 0.69 percent, 1.40 percent, 2.59 percent and 0.03 percent, respectively, while the NGX ASeM Index closed flat.

The year-to-date return rose to 3.71 percent last week.

 

 

 

 

 

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