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Investing.com -- Goldman Sachs downgraded Bumble Inc to Neutral from Buy and cut price target to $7 from $8, saying visibility into a turnaround at the core Bumble app is low and likely not forthcoming until mid-2026.
A prolonged user weakness and intensified competition across the online dating sector has weighed on Bumble. Goldman’s sector review found Hinge leading on user growth while Tinder shows improving international trends.
Bumble has reduced US marketing activity, which Goldman said has driven downloads down more than 35% year on year, with US monthly active users declining at a slower pace.
Goldman adjusted operating estimates to reflect continued declines at Badoo and updates tied to disclosures in Bumble’s latest 10-Q.
The firm said its downgrade reflects a more balanced risk-reward for BMBL relative to Match Group and Grindr at current levels.
Goldman noted that its prior optimism had underestimated the breadth of industry headwinds that weighed on Bumble’s app performance.
Since being added to Goldman’s Buy list in January 2022, Bumble’s shares have fallen about 82% while the S&P 500 rose about 42%.
Since Goldman assumed coverage in April 2024, the stock is down about 41% versus a 31% gain in the S&P 500. Goldman said recent market volatility and reduced risk appetite for small- and mid-cap stocks exacerbated the share decline.
Goldman remained constructive on Match Group, citing clearer operating proof points from recent product updates.
For investors in the sector Goldman said key near-term monitors will be stabilisation or growth in MAUs, top-of-funnel trends and evidence that marketing and product investments are yielding improved engagement and monetization, as well as the broader consumer spending backdrop.