Wells Fargo downgrades Bumble on app download deceleration

Wells Fargo downgraded Bumble to Equal Weight from Overweight with a price target of $10, down from $15. The firm says that while late the company’s April app relaunch drove a “bump” in trends, it hasn’t observed a sustained benefit. As such, the analyst believes second half of 2024 expectations for a reacceleration is likely more challenging. Global Bumble app downloads have decelerated to negative low single digits in late June, a deterioration versus the up 6% in May, with even greater declines in the U.S., where Bumble generates 60% of sales, the analyst tells investors in a research note. Wells does not believe the April relaunch put the business on a path toward near-term reacceleration.