Why Match Group Stock Popped Today
Shares of Match Group (NASDAQ: MTCH) climbed as much as 12% early Tuesday, then settled to trade up around 2% as of 2:45 p.m. ET after The Wall Street Journal reported activist investor Elliott Investment Management has amassed a roughly $1 billion stake in the company. That's a massive stake considering Match Group's entire market cap stands around $10.5 billion as of this writing.
The owner of Tinder, Hinge, and its namesake online dating website, Match has struggled to drive growth in recent quarters. Shares of Match have rebounded from a steep post-earnings drop in November after its 5% decline in users (to 15.7 million) and cautious forward guidance overshadowed an otherwise decent third quarter; third-quarter revenue and operating income grew 9% and 16% respectively. But the stock is still down around 12% over the past year.
According to the WSJ, Elliott will almost certainly engage in a dialog with Match Group management to explore options to maximize shareholder value. It's unclear, however, whether Elliott will push for new leadership or request seats on Match's board in the process, as it's been known to do with past activist investor campaigns.
Source Fool.com
