The swipe-and-match model of dating apps made them popular. However, over time, users began to complain about “swipe fatigue” and shallow experiences. Now, companies like Tinder (MTCH), Hinge, Bumble (BMBL), and Grindr (GRND) are shifting their focus by investing heavily in artificial intelligence to help people find “the one.” As a result, it’s no longer just about matches, but about meaningful connections.
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It is worth noting that AI has been part of dating algorithms for years, but the latest wave of generative AI promises smarter matching, less swiping, and more chemistry. For instance, Tinder is testing a new feature called Chemistry that recommends daily matches based on a user’s photos and answers. Meanwhile, Grindr has added personalized recommendation feeds, and Bumble plans to launch its own AI tools next year. Unsurprisingly, executives across the board say that AI will change everything from profile creation to flirting.
However, these changes are coming at a tough time. Match Group and Bumble are both struggling with falling stock prices due to fewer paying users and a stale product image. That’s why newer startups like Sitch and Amata are launching AI-focused platforms that charge for curated matches and include AI chat-based matchmaking. Even Facebook (META) is entering the game with a dating assistant that’s trained on user preferences.
Which Dating App Stock Is the Better Buy?
Turning to Wall Street, out of the three dating stocks mentioned above, analysts think that GRND stock has the most room to run. In fact, GRND’s average price target of $22 per share implies more than 59% upside potential.
