Alternative Data Platform Predicts Bumble's Earnings Miss

(MENAFN- clickoutmedia) Many investors use alternative data to make informed stock picks, particularly in the institutional space. These nontraditional data sources, like job postings, social media followers, and employee satisfaction, have often proved to be powerful tools, helping them get an inside scoop on companies, grow their capital, and avoid potential pitfalls. One of the latest examples includes the dating app giant Bumble, whose earnings miss was predicted by the alternative data platform AltIndex a week before the official earnings report.
The AltIndex AI Score Showed a Warning Sign Well Ahead of the Market Reaction
In its latest earnings report for the quarter ending June 30, the dating app giant Bumble Inc. (BMBL) reported revenue of $268.6 million, showing a modest 3.4% increase and falling short of the average analyst estimate of $273.2 million. Although the number of paying users grew by 14.7% to 2.8 million, which was merely in line with expectations, the average revenue per paying user dropped to $21.37, down from $23.23 a year earlier, signaling potential difficulties in maintaining user engagement and monetization.
The lower-than-expected results caused Bumble (BMBL) shares to plummet over 25% in the last week, while Bumble's price-to-earnings (P/E) ratio, a key measure of a company's valuation, stands at a troubling 7.91 times earnings. This is significantly lower than the 15.15 multiple seen by its primary competitor, Match Group, showing investors have lost confidence in the dating giant's growth prospects.
These disappointing earnings results were not entirely unexpected for those following AltIndex's alternative data insights. A week before the earnings report, Bumble received an all-time low AI score of 32, indicating growing concerns well ahead of the market reaction and firmly placing the stock in the sell territory.
Several factors contributed to such a low AI score. The AltIndex analysis showed Bumble's app downloads dropped by a massive 20% in the past month alone, indicating a loss of momentum in user acquisition. The company's job postings also declined, suggesting that Bumble may be pausing its growth efforts, while internal sentiment among employees was low, with many expressing concerns about the direction of the product and challenges in leadership.
Bumble's Stock Value Plunged by Almost $4 Billion in a Year
The latest earnings results caused a new hit to Bumble's stock value, causing it to sink even deeper compared to a year ago. At the time of writing, Bumble's stock was traded at $5.98 per share, or 63% lower than in the same month last year. This massive decline has caused a shocking $4 billion hit to Bumble's stock value, which now stands at only $960 million, compared to $4.94 billion in August last year.
The steep decline of Bumble's stock reflects the broader challenges this company faces in turning around its fortunes. According to the AltIndex algorithm, these challenges will continue in the following months, meaning investors should be cautious about the stock's near-term prospects.

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