Leader in online dating services
Massive short interest and other major concerns make this the highest-risk investment in my portfolio, and one to which I’m allocating a relatively low percentage of investment capital.
Introduction and Context for Investment Rationale Match Group (MTCH) operates a collection of well-known online dating brands and recently issued shares to the public in November 2015.
Let’s take a look at how the company measures up along these key factors and examine some of the economic characteristics of its business and the broader industry. A franchise business is one that’s needed or desired, and that has no close substitute.
A dominant market presence, potential for growing operating leverage, and consumer mindshare solidify its competitive position.
What you’re likely to find is that MTCH stock is a lot like love: it arouses feelings of excitement and joy in some, while evoking fear and anxiety in others.
Let’s explore these exciting and anxious feelings together as we learn about the business and the investment case for Match Group.
For context, it’s important for readers to understand that, while I like the company, I view Match as one of my riskiest investments and have sized my position for what will be minimal exposure relative to my higher-conviction stock picks.
Although Match Group doesn’t occupy my Prime Portfolio, I’ll structure the analysis in the same way as that format fits the company’s story quite well.
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