I Don’t Use Dating Apps, But I Know Investing in Them Could Make You a Lot of Money
I haven’t been on a first date in over two decades, and for the record, I met my wife the old-fashioned way — in a bar full of young people.
But there’s a reason I keep an eye on popular dating apps.
Grandview Research projects that the value of the online dating application market will be $8 billion in 2022 and will increase by 53% to $12.25 billion by 2030.
So while I can’t say that I have firsthand experience with getting a date through one of these things, I do have something that can track down big profit opportunities in dating apps: LikeFolio’s consumer insights.
Here’s what the data is saying.
Marriage Is Out
The marriage rate in the United States is plummeting.
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The percentage of women who have never been married has increased significantly over the last 30 years and is now above 30% for the first time.
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The same phenomenon is occurring with men, with over 40% in the “never married” camp.
There are a lot of potential reasons for this, but the one we will focus on today is an increase in the dating pool through apps.
By bringing together a bunch of people looking for the same thing, dating apps give people more options and cause them to hold out for finding their soul mate instead of compromising, said New York University sociology professor Eric Klinenberg in a story published by The Takeaway.
Online Dating Is Here to Stay
LikeFolio data shows that dating app interest has grown over 10x in the past decade and currently sits near all-time highs.
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Of the folks who do end up becoming a couple, most of them are meeting online, a dramatic shift from just 20 years ago.
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As mentioned earlier, the market value of dating applications is expected to reach $12.25 billion by 2030, a 53% increase from 2022’s estimated totals.
So let’s take a look at three dating apps owned by investable companies and see what LikeFolio’s real-time data is showing us.
3 Dating Apps to Watch
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Dating App No. 1: Tinder — owned by Match Group Inc. (MTCH)
Tinder boasts that it has made 55 million matches to date and calls itself the most popular dating app.
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But the novelty of its classic “Swipe Right” feature to select someone you have an interest in is wearing off.
Tinder was launched in 2012, so that feature is 10 years old.
Companies are launching more video-centric features that can help personalize things more than just swiping.
Dating Stock No. 2: Bumble — owned by Bumble Inc. (BMBL)
“Ladies make the first move” on this app, easing the frustrations associated with other “swipe and hope” dating sites.
The number of users returning to the website is growing steadily and is highly correlated to revenue.
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Because of rough quarters, expectations for how this stock can perform in the future are extremely low.
But again, with our data, we can see that the increase in returning users could be setting up the company to exceed those low expectations and reward forward-looking investors.
Dating Stock No. 3: Hinge — also owned by Match Group Inc. (MTCH)
I mentioned earlier that one reason people use dating apps is because they offer more choices in finding dating partners.
But Hinge pitches itself as a dating app that’s designed to be deleted.
In other words, it’s saying that it can help you find that perfect match and not need to be on dating apps anymore.
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Hinge has quickly accelerated its revenue and user growth and makes more money per paying user than Tinder, which could be critical in creating long-term profitability.
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Hinge is also the outperformer among the major dating apps, with higher consumer happiness and demand growth than its peers.
To summarize, if you’re adding dating stocks to your moneymaking watchlist to capitalize on this growing market, you wouldn’t invest in Match just because of Tinder. It’s a well-known dating app, but the data shows it’s not aging well.
Hinge, on the other hand, could be an ace up Match’s sleeve with the quick acceleration of its revenue per paying user.
Finally, expectations are low for Bumble’s stock, so that’s something to keep on your radar. Even the slightest positive news the company presents could get the stock out of the doldrums and send it higher.
Have a great weekend,
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Andy Swan
Founder, LikeFolio
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