Bumble Inc.'s (NASDAQ:BMBL) plummet last week following a notable miss on revenue underscored the company's inability to flourish in the competitive world of dating apps, an analyst said.
Bumble fell 30% after last Wednesday's closing bell after the company's second-quarter revenue of $268.6 million missed analyst consensus by 1.6% and its forecast for third-quarter revenue of $272 million at the midpoint fell short of consensus by 8.2%, Reuters reported.
"At current share price levels, we believe BMBL is no longer pricing in any element of either compounded revenue growth, stable/upward trajectory margins and/or an ability to achieve wider industry growth," Goldman Sachs analyst Eric Sheridan wrote in a note on Friday.
Read Also: Here's Why Bumble's Founder And CEO Whitney Wolfe Herd Is Stepping Down After Nearly 10 Years
Goldman Sachs still maintained a Buy rating on the stock, which declined 3.93% to close at $5.75 on Monday. In early March 2021, Bumble was trading at just over $70 per share.
Bumble founder Whitney Wolfe Herd, who handed her CEO reins to Lidiane Jones in January, said in May the company is looking at incorporating artificial intelligence into the app to help users find their next mates.
"If you want to get really out there, there is a world where your dating concierge can date for you with other dating concierge," she said during an interview with Bloomberg that drew a hearty laugh.
Bumble told Benzinga on Monday that neither Herd nor Jones were available for requested interviews on the company's plans to use AI.
Price Action: Exchange-traded funds that track Bumble also fell on Monday.
- Trenchless Fund ETF (NYSE:RVER) gained 0.35%
- Hypatia Women CEO ETF (WCEO) slipped 0.53%
- Fidelity Disruptive Communications ETF (NASDAQ:FDCF) went up 0.39%
- Fidelity Metaverse ETF (NASDAQ:FMET) edged up 0.025%
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