JPMorgan analyst Cory Carpenter downgraded Match Group (MTCH) to Neutral from Overweight, lowering the price target to $33 from $40. The downgrade reflects muted growth expectations for the online dating industry in 2025 and Tinder’s slower-than-expected turnaround. While downside risk is limited, Tinder’s revenue and users are expected to decline before improving, with growth not anticipated until 2027.
The online dating industry experienced mixed results in the second quarter, with Tinder showing stability, Bumble struggling, and Hinge and Grindr thriving. Analysts predict growth to resume in 2025, but innovation will be key for the industry’s long-term success.
As earnings season progresses, investors should be cautious of companies that have experienced significant reductions in analyst earnings estimates. CNBC Pro has identified 10 S&P 500 companies set to report next week with the most substantial declines in average analyst earnings estimates over the past three months. These companies may struggle to meet market expectations and could face further sell-offs.
