What Happened?
Shares of online dating app Bumble (NASDAQ:BMBL) jumped 7.8% in the afternoon session after an analyst at UBS raised the price target on the stock and positive sentiment lifted consumer-focused companies. UBS analyst Chris Kuntarich increased the firm's price target on Bumble to $7.50 from $6.00 while maintaining a "Neutral" rating on the shares. The move came amid a broader rally for consumer internet stocks. Market sentiment received a boost after the announcement of a new U.S.-Japan trade deal, which eased investor concerns over international trade disputes by lowering proposed tariffs on certain imports. This development was seen as a positive for the economy, potentially supporting consumer purchasing power. For a company like Bumble, whose revenue depended on users paying for subscriptions and premium features, signs of a confident consumer were a positive indicator.
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What Is The Market Telling Us
Bumble’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.1% as stronger-than-expected U.S. retail sales data pointed to a resilient consumer, lifting sentiment for consumer-focused stocks.
The dating app operator's stock rose in a broad rally for consumer discretionary companies after a key economic report eased recession fears. The Commerce Department reported that U.S. retail sales jumped 0.6% in June. This report suggests that consumer spending, a critical pillar of the U.S. economy, remains robust. For a company like Bumble, whose revenue relies on users paying for subscriptions and premium features, signs of a confident consumer are a major positive. When people feel financially secure, they are more likely to spend on non-essential or "discretionary" services, including dating apps.
Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
Bumble is up 2.8% since the beginning of the year, but at $8.20 per share, it is still trading 12.3% below its 52-week high of $9.34 from July 2024. Investors who bought $1,000 worth of Bumble’s shares at the IPO in February 2021 would now be looking at an investment worth $116.56.
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