Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Susquehanna has raised its price target on Bumble Inc. (NASDAQ:BMBL) to $7.00 from $5.00 while maintaining a Neutral rating on the dating app company’s stock. Currently trading at $6.32, the stock has experienced significant volatility, dropping nearly 18% in the past week. According to InvestingPro analysis, Bumble appears undervalued based on its Fair Value assessment.
The firm cited Bumble’s progress on cost-cutting initiatives, including approximately $40 million in reductions related to the June workforce reduction, as part of the company’s previously outlined $100 million in annualized cost savings.
For the third quarter, Bumble expects revenue of $240 million to $248 million, representing an approximately 11% year-over-year decline at the midpoint, which is 4% above Susquehanna’s estimate and 1% above consensus. Bumble App revenue is projected to be $194 million to $200 million.
The company anticipates third-quarter EBITDA between $79 million and $84 million, 17% above Susquehanna’s estimate and 7% above consensus, reflecting the impact of cost-saving measures that are expected to take greater effect in the second half of 2025.
Bumble plans to increase marketing spend in the second half of 2025 from second-quarter levels to support brand initiatives, while maintaining minimal performance marketing, and continues to seek additional cost reductions with a focus on talent efficiency.
In other recent news, Bumble Inc. reported its second-quarter earnings for 2025, revealing a significant miss in earnings per share (EPS) compared to forecasts. The company reported an EPS of -$2.45, contrasting sharply with the forecasted $0.34, resulting in an EPS surprise of -822.5%. However, Bumble’s revenue slightly exceeded expectations, coming in at $248 million against the forecast of $244.17 million. Despite these mixed results, Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Bumble, noting that the company’s second-quarter results slightly surpassed its late-June preannouncement. Meanwhile, Wolfe Research maintained its Peerperform rating on the stock, citing potential upside from in-app purchase fee savings not currently included in the company’s guidance. These recent developments highlight the varying perspectives among analysts regarding Bumble’s financial performance and future potential.
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