3 Reasons to Buy Bumble After Its Post-Earnings Tumble
Bumble's (NASDAQ: BMBL) stock recently fell below its IPO price after the online dating company posted its first-quarter earnings. The decline was surprising since Bumble easily beat analysts' expectations.
Its revenue rose 43% year over year to $170.7 million and beat estimates by $6.1 million. Its adjusted EBITDA surged 108% to $46.1 million, and it posted a net profit of $1.69 per share, compared to expectations for a net loss. However, most of those profits came from a one-time tax benefit.
For the full year, Bumble expects its revenue to rise 34%-35% and for its adjusted EBITDA to increase 24%-27%. Both estimates surpassed analysts' expectations, but investors still fled the stock -- presumably due to the rotation from growth to value in this jittery market. But despite that pressure, I believe it's still smarter to buy Bumble than sell it at these levels, for three simple reasons.
Source Fool.com
