The major dating apps have had their hearts broken; their honeymoon with investors appearing to have come to an end. Two examples illustrate this rupture. The first is Bumble, which promised to give women more power in digital liaisons, stipulating that they be the ones to begin conversations on the app. The U.S. app’s breakout moment culminated when it began trading on the Nasdaq in February 2021. The company’s initial public offering (IPO) made a strong debut, with shares surging 85% on the first day, jumping from $43 to $78.89. However, the stock has since plummeted, now trading at just $6.33 after a 57% decline this year. The second is Match Group, where a similar situation has unfolded. Since its IPO in 2015, Match Group — the dating industry leader that owns platforms like Tinder and Match.com — saw its peak stock price in December 2021, but its shares have since dropped by 79%
Why are investors cashing in their stocks in these companies? Various reports blame the platforms themselves for having raised in-app prices to increase earnings. But in reality, things are more complicated. Tinder has a range of rates, from $3.99 to $499.