People seem to be relying on the online dating platform Bumble (BMBL) for their mistletoe moment this Christmas. The pandemic has restricted traditional dating for the past two years, highlighting the practicality of online dating services. Bumble is witnessing a consistent expansion and improved engagement in its user base.
However, BMBL stock prices are not doing well lately, and there have been a lot of discussions around that. The stock has depreciated 53.28% since the company released its IPO in February this year. Despite this, the Bumble website is among the top trending websites today, due to increased traffic.
Being a part of the social media domain, website traffic is a key factor in determining how the business is doing.
Website Traffic on the Rise
After an initial 5.14% decline in traffic to its website month-over-month at the end of October, we saw an uptrend in unique users visiting the website in November. Specifically, during the period between the end of October to the end of November, there was a growth in Bumble of 1.29% in unique visitors who opened the app from various devices, globally.
Leaving aside the U.S.A., which brings the largest percentage (37.1%) of traffic to the Bumble platform, the global non-U.S. regions together recorded a 4.38% increase in web traffic month-over-month in November.
Moreover, when we looked more deeply into the data, we found that the number of unique visitors to the website this year-to-date was 38.69% higher than that of the same period last year.
User Growth is Impressive
In the third quarter, a temporary restriction on Google Play payments hung heavy on the top line. Despite this, Bumble’s total paying users increased 4.6% year-over-year, with the Average Revenue per Paying User growing 18.5%.
Management expects significant improvement in app payers in Q4, which keeps us encouraged about the platform’s growth prospects in the near term.
Experts Are Upbeat
JPMorgan analyst Cory Carpenter upgraded the stock’s rating to Buy from Hold earlier this month, while maintaining a $55 price target. Carpenter was upbeat about the encouraging user growth trend that Bumble is witnessing.
In general, sentiments on Bumble appears to be positive, with a Strong Buy consensus rating, based on 7 Buys and 2 Holds. The average Bumble price target stands at $55, indicating an upside of 67.43% from current stock price levels.
Disclosure: At the time of publication, Chandrima Sanyal did not have a position in any of the securities mentioned in this article.
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