Raymond James reiterates Market Perform rating on Bumble stock

Published 07/08/2025, 10:58
Raymond James reiterates Market Perform rating on Bumble stock

Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Bumble Inc. (NASDAQ:BMBL) following the company’s second-quarter results. According to InvestingPro data, the company’s stock appears undervalued based on its Fair Value analysis, despite showing strong returns over the past three months.

The dating app company reported second-quarter results slightly ahead of its late-June preannouncement, while third-quarter guidance was largely in line with expectations.

Bumble’s paying users dropped in the second quarter, which the company attributed partly to cutting a promotional program that had attracted lower-value users. Average revenue per paying user (ARPPU) at Bumble App grew year-over-year for the first time since the second quarter of 2022.

The company provided more details on its quality-focused turnaround plan, including user evaluation processes and product timelines, with significant launches scheduled for August 2025 and February 2026.

Raymond James acknowledged the deeper insight into Bumble’s strategy but maintained its neutral stance, suggesting investors might remain on the sidelines until there is evidence that these strategic shifts are resonating with users.

In other recent news, Bumble Inc. reported its second-quarter earnings for 2025, revealing a significant discrepancy between actual earnings per share (EPS) and analyst forecasts. The company posted an EPS of -$2.45, which was notably lower than the anticipated $0.34, marking an EPS surprise of -822.5%. Despite this earnings shortfall, Bumble’s revenue slightly exceeded expectations, coming in at $248 million compared to the forecasted $244.17 million. The company’s stock remained stable following the earnings announcement. This development highlights the importance of revenue performance, even when earnings fall short of expectations. Investors and analysts will likely keep a close watch on Bumble’s future financial reports.

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