Match Group Inc Ordinary Shares - New

MTCH: XNAS (USA)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
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Match Reported Mixed Q2 Results; Tinder Continues to Soar; Maintaining FVE; Shares Overvalued

Match reported mixed second-quarter results with revenue exceeding the FactSet consensus estimates while the bottom line came in slightly short. The firm’s continuing growth in users and revenue per user displayed its network effect moat source, supporting our narrow moat rating. However, the acquisition of Hyperconnect could pressure gross margin a bit. We continue to view the stock overvalued given our unchanged $118 fair value estimate and we continue to recommend new investors to wait for a bigger pullback before investing.

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