Here is Why BMBL Stock is a Must-Buy Despite Declining 48% in a Year

Zacks
01-09

Bumble BMBL shares have dipped 47.6% over the past year, underperforming the Zacks Computer and Technology sector’s appreciation of 35% and the Zacks Internet – Software industry’s return of 37.3%.

BMBL shares have also underperformed industry peers like Sea Limited SE and Appian APPN, which have rallied 186.7% and 2.9% over the same time frame.

However, Bumble has strong growth prospects, with its innovative platforms, strategic pricing and focus on secure connections.

Bumble stock is also relatively cheap, as indicated by its Value Score of A. In terms of the forward 12-month price/sales, BMBL is trading at just 0.77X, compared with the broader sector’s 7.12X, suggesting that the stock is currently undervalued.

BMBL’s 2025 Earnings Estimate Trend Steady

The Zacks Consensus Estimate for BMBL’s 2025 earnings is pegged at 86 cents per share, unchanged over the past 30 days.

The consensus mark for BMBL’s 2025 revenues is pegged at $1.06 billion, indicating a year-over-year loss of 1.29%.

BMBL beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 8.69%.

Bumble Inc. Price and Consensus

Bumble Inc. price-consensus-chart | Bumble Inc. Quote

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

BMBL’s Innovation Positions It for Long-Term Growth

BMBL benefits from a strong portfolio of innovative offerings that includes platforms like Bumble, Badoo, Fruitz and Official. In addition to its dating platforms, Bumble is also actively exploring opportunities to expand into non-romantic connection spaces. Its latest introductions, like BFF and Geneva, are dedicated to building friendships and community.

Bumble’s strong brand, rooted in empowerment for women, sets it apart from its competitors like Match Group MTCH. The platform allows women to make the first move in heterosexual matches, flipping traditional dating norms and giving them more control over their interactions. This is helping the company attract and retain a loyal user base.

To ensure long-term profitability, BMBL is strategically optimizing its pricing and paywall systems, aiming to strike a balance between free and paid users. These efforts focus on enhancing the value of premium offerings to align with evolving consumer needs.

Bumble has a robust roadmap focused on delivering authentic and meaningful connections. The introduction of key features like ID verification and AI-powered photo selection is noteworthy. They aim to address the growing user demands for safer connections and resonate with the preferences of their core audience, particularly Gen Z women, who prioritize trust and authenticity in their online experiences.

Why BMBL Stock is a Must-Buy?

With its innovative offerings, strategic optimization and strong brand identity, BMBL is well-positioned for long-term growth.

BMBL currently flaunts a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.

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