SEEKING ALPHA - Oct 2 - MTCH stock is a lot like love: it arouses feelings of excitement in some, while evoking fear in others. The industry has very low barriers to entry and established players must always consider the threat of incoming competition. However, once established, the top brands usually retain their position. Match's market share is estimated to be 25.7%, with eHarmony coming in at 12%. Match Group is to online dating almost what Facebook is to social media. Some investors look at Match Group's steadily declining average revenue per paying user (ARPPU) as an indication that customers are less willing to pay. However, management noted in its Q1 '17 conference call that each of its top six brands had either flat or higher ARPPU YOY, an indication of stable pricing. The declines are related to product mix shifts toward lower-cost Tinder services and toward international customers which also have lower ARPPU. Match's business, pairing up people looking for a romantic connection..is as timeless as any business around. Fast forward 5, 10, or 15 years and online dating stigma may be a thing of the past, particularly given the up-and-coming generation growing up on Tinder.
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Summarized by the Courtland Brooks team
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