Curtis Nagle, an analyst from Bank of America Securities, reiterated the Sell rating on Bumble (BMBL – Research Report). The associated price target was lowered to $4.50.
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Curtis Nagle has given his Sell rating due to a combination of factors impacting Bumble’s financial performance. The company has experienced a decline in revenue growth, particularly within its Bumble and Badoo apps, where user numbers and average revenue per user have decreased. This trend is compounded by management’s decision to reduce marketing expenditures, which may further suppress revenue growth in an already challenging online dating market.
Additionally, Bumble’s guidance for the upcoming quarter indicates revenue figures below market expectations, although there is a positive outlook for EBITDA due to significant cuts in sales and marketing expenses. Despite efforts to focus on cost savings and profitability, the uncertain macroeconomic environment and declining industry trends present significant growth risks. Consequently, Nagle has lowered the price objective for Bumble’s stock, reinforcing the Underperform rating.