Bumble’s stock dropped nearly 5% on Tuesday after JPMorgan analysts downgraded the dating app to an underweight rating, citing concerns over slowing growth and increasing competition from rival Hinge. The women-first platform, known for its unique approach to online dating, faces pressure as industry dynamics shift.
Analyst Cory Carpenter highlighted that Bumble’s efforts to boost user engagement and growth are still in early stages. Meanwhile, Hinge continues to gain market share, posing a significant challenge to Bumble’s position – something that doesn’t come as much of a surprise, considering that Hinge seems to constantly continue growing even when all other Match Group apps see a dip in users and revenue.
Carpenter also forecasted that declines in revenue and paying users could accelerate in the short term, with a potential recovery not expected until 2027. “While Bumble offers a differentiated, women-first experience, key initiatives to reignite engagement are still ramping,” Carpenter noted, maintaining a price target of $5 per share. This valuation reflects limited upside compared to competitors like Match Group, which owns Hinge and currently trades at a higher multiple.
Despite boasting around 4 million paying subscribers across Bumble and its sister app Badoo, analysts flagged risks associated with industry consolidation and market pressures. Over the past year, Bumble’s shares have fallen by more than 50%, underscoring investor concerns about its ability to maintain momentum, something that the platform is actively working to change now that Whitney Wolfe Herd is back at the helm.
