Bumble downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Cory Carpenter downgraded Bumble to Neutral from Overweight with a price target of $7, down from $17. The company reported mixed Q2 results and significantly lowered its 2024 outlook, the analyst tells investors in a research note. The firm says the Bumble app relaunch did not have the desired impact on new user trends and monetization, and management is resetting its go forward strategy to focus on ecosystem health and customer experience. This means certain monetization initiatives are being put on hold, and conversion could be impacted by customer experience enhancements around safety and profile quality, contends JPMorgan. The firm moves to the sidelines as Bumble “works through its strategic reset.”