Bumble Inc. (BMBL) CEO Whitney Wolfe Herd expects the online dating industry to be exceptionally strong in 2021. Market participants agreed, and BMBL stock rose 10.89% to $ 69.76 in trading on March 11.
This year, Bumble went public, providing women with a hybrid dating service that combines dating for romance with the projection of career and business success. As a result of the massive COVID-19 vaccinations and the “incredible loneliness” accumulated due to forced self-isolation, Bumble founder Whitney Wolf Heard believes the dating industry will see unprecedented growth in demand.
The forecast may be true based on some evidence. The number of monthly paying users for the Bumble app and the Badoo app increased by 32 % in the last quarter to 2.7 million.
Margins may decrease as Bumble Inc. (BMBL) expands into new markets. However, Wall Street and Bumble are relying on deferred demand to drive sales and may become one of the BMBL stock drivers.
On the other hand, online dating is still facing uncertainty in the long term. About half of Americans surveyed by Pew Research Center in October 2019 believe dating is more difficult today than a decade ago. The MeToo campaign has confused men regarding how to act, and 65% of women say they have experienced inappropriate dating behavior.
Females are more likely to view online dating positively and spend more time online. Meanwhile, young people in developed countries find relationships too burdensome, and their interest in them declines as they grow older. As a result, there will be a shift in gender balance in dating services. Since Bumble Inc. (BMBL) was initially integrated with the service, perhaps it would benefit from these changes.