Stock Market: Spark Networks Could Be The Next Netflix

BENZIGA - May 10 - 9 months ago Netflix traded for $55 a share. Over the last 7 months, Netflix quadrupled in value and is now trading at ~$217 a share. Who will be the next Netflix? It could be Spark Networks, which owns and operates JDate and Christian Mingle. It only has $170M market cap. JDate been around for over a decade and has had a 90% or higher contribution margin for the last 11 years running, but it hasn't grown. It is the very definition of a beautiful cash cow. Christian Mingle is aimed at the market of Christians in the United States, which is 30 times larger than the Jewish market. It is now substantially larger than JDate. It is not yet profitable because they take all of their cash flow and plow that back into growth. Last quarter, revenues grew 45% YOY. IAC is the most logical buyer for Spark, and it would be a tiny bite-sized acquisition.

by Louis Bedigian
See full article at Benzinga

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Comments

[Mark Brooks]

That's a huge stretch. Spark Networks summary graphs and numbers are at Online Personals Watch here... http://www.onlinepersonalswatch.com/news/spark-networks-financials.html