Can you trade Tinder stock? Match Group, Inc. owns Tinder, and their stock symbol is (NASDAQ: MTCH). They also own Match.com, OkCupid, Hinge, PlentyOfFish, and several more, totaling 45 global dating companies.
Tinder (MTCH) Stock Introduction
2020 was harsh on everyone. We went from strict lockdowns for most of the year to dealing with the pandemic. With toilet paper shortages and now-changing weather patterns, winter states are becoming warm and throwing warm states under inches of snow.
That endeavor, too, hit a roadblock as lockdowns put an end to all dating activities. The biggest issue plaguing people worldwide was not food or toilet paper but loneliness. As they grappled with being cut off from society, even those who weren’t inclined to date began feeling the need for one.
What’s the Story Behind Tinder Stock?
Consumers’ dating preferences vary significantly across geographies, influenced by religious and cultural factors, demographic norms, and even intent (casual vs serious relationships).
However, unlike the one ring to rule them all, no single app has managed to cater to these preferences together. Thus, each preference has its own app with its features. A company looking to capture the dating market will do well to own a bouquet of apps.
As a result, that’s what Match Group does. The match consists of a brand portfolio of 45 apps aiming to cover the maximum amount of global preferences.
Tinder is the group’s flagship app and one of the most recognized brands worldwide. It’s also the highest-grossing app around the world. Now, that’s an achievement and shows that people are willing to drop some serious money when it comes to dating.
The same is reflected in the company’s revenues, which continue to go up with no signs of exhaustion. Even during the pandemic, when everything slowed, Tinder revenues grew significantly.
Tinder Stock Biggest Strength
Tinder’s biggest strength was the gamification of the dating experience. Gamification may be well known now, but when Tinder introduced it in their app in 2012, its potential for fueling growth was underestimated across the industry.
By the time Tinder came into existence in 2012, desktop-based and chat-oriented dating apps like OkCupid, Match.com, and eHarmony existed. And they had a large user base.
Regarding dating apps, the larger the user base, the bigger the chance of a match. Thus creating a self-fulfilling positive cycle. Tinder disrupted the whole model by introducing variable rewards and swipe functionality.
Dopamine is released every time we indulge in any pleasurable activity, like eating our favorite food, listening to our favorite movie, or even achieving something or winning something. That’s why people play slots. We know most people lose at it. But the dopamine hit that ensues following a small victory, and the chase for that dopamine causes people to continue putting coins in the machines.
There’s an anticipation of another victory and, consequently, another dopamine hit. Dopamine is also released while playing games where you accomplish something. And when you have a big win trading something like Tinder stock.
That’s why some of the most engaging and addictive games out there, like Candy Crush, offer small-sized levels or missions, which, once completed, give a small dopamine boost to the brain. And it has you playing and even dropping money for more opportunities.
Success and Danger of Gamification
That’s what makes gamification so successful as well as dangerous. Tinder introduced the swiping feature, allowing one to communicate only when both swipe right on each other. Once two people swipe right on each other, it’ll announce a match on both their phones via notifications.
A successful match creates an instant dopamine rush. Once the initial chat is over, one begins looking again. As they say, the fun is in the chase, and Tinder allows you to undertake that chase on steroids. Tinder then pivoted its revenue model to make money on the swipes.
Users are provided with a limited number of swipes. They then have a cool-down period during which they cannot swipe unless they pay for various account types, allowing for higher or unlimited swipes. People addicted to the chase have no option but to pay the money.
Especially if they wanted to continue using it as per their need, this simple yet revolutionary method catapulted Tinder, an app rated consistently for poor technology, to the top of the industry. Simply because it was fun. While everybody is trying to emulate it now, its leadership position stands cemented.
If we ever see a Tinder IPO, that could have a huge impact on Tinder stock. We’ll have to keep waiting for now, though.
Issues Faced
Tinder’s issues stem from two parts. It’s the user experience, as well as potential legal issues. User experience began to sour once bots were introduced into the mix.
To encourage unsuccessful users back to their platform, Tinder would send bots to match and chat with them.
A user who has not had much luck and stopped using the app would be enticed to return. Drop money on the app to talk to that match.
Such has been the proliferation of bots that a quick search on Google gives you hundreds of thousands of results on spotting a Tinder bot, signs that your Tinder match is a bot, etc.
It’s become a meme culture, and people constantly post screenshots of bot chats, which could affect a Tinder IPO.
Tinder Stock Legal Issues
The next set of issues focuses on the legal aspects Tinder Users face. We have scam bots who try to scam people into giving them cryptocurrency. There are fake profiles, and people always hide their photos and identities.
This often leads to unfortunate scenarios where people are catfished. This can be a danger for women who are exposed to predators. Tinder has strived to protect its users, but the threat remains.
For men, the issue isn’t fake profiles but those that indulge in prostitution. Tinder has a strict policy against solicitation, reviewing and bans accounts reported for solicitation frequently. However, such accounts pop up frequently.
Some are upfront about it. Others don’t reveal it until they meet on a date, and it ruins the user experience, not to mention that it puts men in a bad position in some countries where prostitution is illegal.
This leads to extortion, and the men in precarious positions have no option but to pay up if they want to avoid criminal charges.
On the business side, the strong monopoly formed by the Match Group exposes it to potential antitrust lawsuits. While there’s been no such lawsuit yet, the threat remains and may impact the company’s future. Its only competition is Bumble so far. Match Group tried to acquire it, but Bumble refused.
Then was engaged in litigation, which was resolved some time ago. However, Bumble works in a different business style where women hold all the power. Their niches are distinct enough for Tinder to remain dominant in the market.
Frequently Asked Questions
Match stock has been trading between $30-$50. It has an all-time high of $180. There's room for growth potential in their stock.
The stock symbol for Match.com is Match Group Inc MTCH: NASDAQ.
Tinder is owned by Match Group, Inc (MTCH). They also own dating sites such as Hinge, Match, and OkCupid, and Plenty of Fish.
