A Big Announcement Is Setting the Stage for This Dating Company to Soar
Today, we're checking in on one of the top-performing names across all Stansberry Research publications...
At the bottom of the daily Stansberry Digest, we publish the "Stansberry Research Top 10 Open Recommendations"... These stocks are the 10 highest-returning open positions across all of Stansberry Research's portfolios.
The list contains recognizable, long-term names like Microsoft (MSFT) and Automatic Data Processing (ADP), as well as smaller companies like Intellia Therapeutics (NTLA). All the companies that made the cut have returned more than 400% since their initial recommendation.
Today's company makes the list, too...
Match Group (Nasdaq: MTCH) owns a portfolio of dating apps that is second to none. This includes its namesake – Match.com. But it also boasts popular apps like Plenty of Fish, Tinder, OurTime, OkCupid, and Hinge.
This is a growing industry. Twenty years ago, online dating was considered "taboo." But now, it's just the way people meet. And Match Group completely dominates the industry with all of these apps. But Tinder is its crown jewel...
According to Match, Tinder is the most downloaded dating app in the world. It's the highest-grossing "lifestyle" app.
Match's lifestyle apps all count millions of registered accounts. But since they're all under the same company's umbrella, they're not competitors in the grand scheme of things.
Match has products available in 42 different languages across more than 190 countries. The company says hundreds of millions of singles have used one of its brands' products at some point. All told, Match Group has more than 15 million paying subscribers.
This gives Match a huge advantage over competitors in the online-dating market. According to the company's data, 60% of all relationships started on an online-dating site are done through Match's portfolio of products.
By the numbers, Match is still growing rapidly. In the most recent quarter, Match grew revenue by 27% from the same quarter in 2020. And it grew users by 15% in the same period.
That's especially impressive when taking into account the growth Match saw when people were stuck at home during the COVID-19 pandemic. After all, online dating was one of the only ways people could meet and talk during the lockdowns. Match even launched video chat features to help keep folks connected.
But the strength isn't going away now that the economy is reopening. In fact, Match said that it's seeing a pickup in its Tinder business (and a resurgence in its non-Tinder brands) as restrictions are lifted and people get more comfortable meeting in person.
In short, Match has a strong, growing business in a huge industry. But that's not the only reason we like the company. Now, there could be a flood of cash headed for Match shares...
Earlier this month, Standard & Poor's (S&P) announced its changes for its major indexes ahead of the September quarterly rebalance. One notable move is that Match will switch from the S&P MidCap 400 Index to the S&P 500 Index, replacing pharmaceutical manufacturer Perrigo (PRGO). The change will take place on September 20, in accordance with S&P's quarterly rebalance.
This is a huge shot in the arm for Match shares. It means that the company is now one of the 500 largest publicly traded companies in the U.S.
Inclusion into the S&P 500 will bring a flood of demand and new buyers for the stock. Any index fund that tracks the S&P 500 needs to buy Match shares in order to keep up with its benchmark.
We saw the start of this already last week. On Tuesday (the first trading day since S&P announced the inclusion), Match shares surged 7.5%. But the gains aren't over yet. More index funds will have to buy up shares.
Match is a leader in the online-dating business, with many of the top dating apps across the world. That alone has propelled the stock higher, and onto the Stansberry Research list of Top 10 Open Recommendations. Now, inclusion into the S&P 500 should serve as a further tailwind.
Sometimes investing is simple.