Bumble ticker symbol: BMBL just this morning and we’re already seeing gains in excess of 70. Now i know the question on everybody’s mind is should we get into this stock should we buy this ipo is it something that we’re gonna hold for the long term take these profits now like what’s going let’s get into it.
Bumble is the name of the company it is a dating app so let’s kind of go over some of the numbers what they’re doing revenue wise whether or not they’re turning a profit and most importantly is this a company that we should be investing in now.
There might be some of us out there who don’t know what ipo stands for so let’s just go over that really quick ipo stands for initial public offering and that’s the first-time where shares in a company are offered to the general public and this is where the company brings in all of the revenue once shares start trading after that once they’re on the market the company no longer brings in in revenue from these shares it’s the initial public offering where they’re able to raise their money all right and we saw the initial public offering take place around 40 dollars and it was 43 dollars per share this morning and it’s already trading at 70 some dollars per share more than a 70 increase that we’re seeing.
As we speak a lot of people are wondering should we get in is it already too high like what’s going on now ipos are are very exciting to trade because often we do see very drastic price increases like this especially when the company you know ipos at a lower price than the market is willing to pay they came out at 43 dollars per share right off the bat people said okay well we believe this company is worth 70 some dollars so we’re gonna be able to buy this stock for 70 dollars and that’s what the demand took over and said this company’s worth.
Now one of the things that i always recommend about IPO’s and when we’re looking at them is the fact that when we see gains like this just in a couple hours there going to be a lot of people who want to take their profit and want to book these profits so we could see the price fall back down at least in the near future right you know we might see people sell it over the next couple of days maybe into next week and kind of see where this price wants to settle but what do i like about this company and what do i like about this industry so it’s no surprise that mobile dating apps are a growing industry and yes they’re you know it’s kind of recent i don’t want to say too recent you know a lot of people know about these dating apps and i think it was like 2013 when they really started to catch on and tinder is the leader in mobile dating right now but bumble is at a close second.
In the united states at least in our market but looking at this as a global opportunity in a global market mobile dating or mobile apps for dating are a three billion dollar a year industry and you know knowing that they’re only growing this is going to set us up for the future and give us an opportunity to really be able to grow our money in a growing industry now a couple things that i do like about bumble let’s talk about their revenue their revenue is growing a couple years ago they were doing around 300 million dollars a year in revenue now they’re up closer to around 500 million dollars a year revenue if you look at their most recent income statement we can see around 488 million dollars in revenue is what they brought in but what i really like to look at is the bottom line okay is this company turning a profit yes they are okay bumble made 93 million dollars on their bottom line last year and this is you know this is always great news if we’re looking at a company to invest in especially long term now i know a lot of ipos and a lot of newer companies it’s almost like you know you don’t expect them to turn a profit especially not right off the bat and especially in a growing industry.
I do like the fact that bumble is out there they’re turning a profit they’ve got 93 million dollars on the bottom line which means that their earnings per share is positive so this is great news when we’re looking at the ability of this company to grow and to be able to reinvest in the company and and just grow internally that way so we’re looking at a company that’s growing the revenue is going up their net incomes going up we’re looking at an industry that is growing the mobile dating in the the dating application industry is growing as well and the opportunity is there knowing that it’s a three billion dollar a year industry so this this stock has a lot of things going for it that i really like right now but is it time to invest right is this 70 increase today look
I’m gonna say if you’re a speculative trader if you’re okay with volatility and you’re okay getting in right during an ipo during the first day this is going to be a volatile stock you know we see a lot of people having these 70 gains obviously we can see a pullback and if you’re not committed to holding it and if you don’t believe in the the dating industry or not the dating industry obviously you should believe in the dating industry but if you don’t believe in mobile applications as the future of dating then maybe this isn’t something that you should be getting into right now and never get into a stock just because you have that fear of missing out or you want to try and capture some of those gains right 70.
in a couple hours is obviously a huge opportunity and a lot of people made out very well but it’s not something that you should be jumping on the train if you don’t believe in the underlying company so but knowing that you know they have rising revenue they have rising earnings they have rising net income the industry is rising i mean this could be a great opportunity as we see them continue to grow and continue to you know move forward in this space and it’s not just like it’s here in the united states either there i believe they’re headquartered in the united kingdom and they’re in over a hundred and fifty countries so basically you know if you’re looking for a date almost anywhere you can go to 150 different countries download bumble and you’re good to go you know you can keep swiping right swiping left whatever you whatever you like to do right but no their user base is huge it’s growing.
I believe that they had it , i looked up a few different numbers but i believe it was something like over a hundred million downloads or 100 million users are on bumble right now across the globe and it’s really you know it’s not something that i believe is just like a fad or something like that i believe that the mobile dating industry and dating apps like that are going to be around we’re only going to see the revenue increase we’re only going to see you know the industry increase as time goes on and one of the statistics that i thought was very interesting was in 2020 during the pandemic bumble users grew by 25 now i’m sure that had a lot to do with people staying at home you know you’re not able to go out you’re not able to meet people and you know i don’t know if i should call it the more traditional way but it’s that was not there right we were we were lacking that social dynamic in 2020 and really we’re still lacking some of it now because the pandemic isn’t over although things are dying down and slowing down with pandemic and the whole vaccine’s rolling out it’s not quite over.
Yet we’re still seeing the spillover effect and you know that really could have revolutionized these mobile dating apps so that’s something to think about as well because we did see that increase in usership during 2020.
Now i want to know guys this stock is brand new it just came out today i don’t expect a lot of people watching this video to half bumble in their portfolios but if you do let us know kind of what you’re thinking if this is something you’re going to hold long term whether or not you’re going to take your profits what price you got in it and if you expect it to pull back over the near future or if you think this stock can go on a run and we’re only starting to see the beginning of these gains.