(MENAFN- Baystreet.ca) After looking at Match.com (NASDAQ:MTCH) and IAC Interactive (NASDAQ:IAC) benefit from the ongoing rise in online dating, Facebook (NASDAQ:FB) wants to get into this business. The news sent MTCH stock down 5% last week after shares showed a "double top" on the charts at $90.
Facebook launched Facebook Dating on Sep. 5 in the United States. It will also give people the ability to integrate their Instagram posts directly into their Facebook dating profile. People may add Instagram followers to their Secret Crush list as well as adding Facebook Friends. Integrating Facebook and Instagram Stories to the dating profile comes later this year.
Facebook cannot afford to lose in the online dating market. Although the site, WhatsApp, and Instagram are all attracting plenty of advertising, the dating unit will also bring in more ad revenue. And even though privacy concerns and the lack of protecting consumer data is still weighing on the firm's reputation, chances are good the dating site will do well. Facebook as a massive user base on all of its online properties.
At a forward P/E of below 20 times, the company has strong revenue growth ahead to lift the stock to new highs.
Facebook may face plenty of government probes but that will not slow the company down. The stock is still a buy.
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