Bumble’s Hold Rating: Navigating Revenue Decline and Innovation Challenges

BTIG analyst Jake Fuller has maintained their neutral stance on BMBL stock, giving a Hold rating today.

Jake Fuller has given his Hold rating due to a combination of factors affecting Bumble’s financial outlook. Despite meeting expectations, the company’s guidance for the second quarter was mixed, with a modest revenue outlook and ongoing struggles in increasing the payer count and revenue from the Bumble App. Fuller notes that while the company is making efforts to cut costs, particularly in marketing, and improve EBITDA, these measures alone are insufficient to drive growth.
Fuller emphasizes that Bumble’s current challenges include a declining revenue trend and a lack of innovative strategies to counteract the broader dating app fatigue. The company’s revenue has been decreasing year-over-year, and margins have also fallen. Although Bumble has identified potential cost savings and aims to improve its EBITDA margin, Fuller remains cautious, highlighting the need for innovation to attract renewed investor interest. Consequently, the Hold rating reflects a wait-and-see approach as the company navigates these challenges.

In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $5.50 price target.

BMBL’s price has also changed dramatically for the past six months – from $7.780 to $4.390, which is a -43.57% drop .