Match: The New Dating Game
10/11/2016 8:00 am EST
Investors can bet on the dating game — not the old TV show, but you can make some money betting on the new dating game of the technology era, asserts Jason Williams, editor of Wealth Daily.
The days of your mom or your friends setting you up on blind dates with their friends are over.
Heck, the days of joining a club or going to a bar to meet someone are practically over, too — thanks in large part to one particular company.
Internet dating sites aren’t really that new. But over the past few years, as smartphones made their way into every aspect of our lives, a new trend has evolved. I’m talking about dating apps.
And there’s one company out there that owns a whole bunch of them... and therefore owns the content users upload as well as the right to advertise to those people and even sell them upgrades and extras within the apps.
The best part about this kind of company is that it mostly has fixed costs. Whether the apps have 10 users or 10 billion users, they cost the same amount to operate. So the dollars that come in from every new user flow much more directly to the bottom line of the balance sheet.
In fact, just last quarter, a 21% increase in revenue at this company led to an 82% jump in operating profits! That’s what we call leverage, and its part of what makes this company such a great investment.
It’s also one of the reasons this company has beat analyst expectations for earnings every quarter it’s been in existence.
Meanwhile, international market is just heating up for this industry. More and more people in Europe, Asia, and Latin America are swiping right on dating apps, and that’s going to lead to even more and even bigger profits in the future.
Any way you look at it, an investment in Match Group (MTCH) is a smart bet on the dating game; one that’s going to score you big returns as more and more people sign on in hopes of finding true love.
By Jason Williams, Editor of Wealth Daily