Match Group (NASDAQ) built a beautiful moat around itself over the years. It has some of the most popular dating apps, such as Tinder and OkCupid.

Match has risen to prominence in the budding dating industry. It offers many ways for users to achieve the same goal.

Match Group, in a sense, is similar to Facebook (NASDAQ): Match Group, however, is still small and has a market capital of approximately $43.5 billion.

It can acquire its rivals without being too visible to anti-trust regulators. For this reason, Match Group stock is my favorite, even though COVID-19 headwinds continue to exist. (See Match Group stock charts on TipRanks)

Has Match Group met its Match?

Bumble, a popular dating app (BMBL), has proved itself to be a strong competitor for Match. Bumble just had an IPO which was a success, giving investors a more limited way to get into the dating business.

Bumble, which is valued at $10 billion, has more freedom than Match Group. Match Group may not be able to acquire Bumble after today’s high valuations. However, Match is constantly looking to add new subscribers.

Match is like Facebook and keeps an eye on industry trends. Match can adapt and put into practice any changes that are needed to make an app popular.

Match Group’s valuation is the biggest concern. Even with COVID-19 headwinds which might be staying around for longer than expected, the stock trades at over 13x its sales.

Wall Street’s Take

According to TipRanks’ consensus analyst rating, MTCH stock comes in as a Moderate Buy. There are seven analyst ratings. Five of them have Buy recommendations and two hold recommendations.

The average Match Group price target is $174.86. The average analyst price target ranges from $148 to $190 per share.

Bottom Line

Although expensive, you’re getting a dominant behemoth that can likely sustain a respectable double-digit growth rate on the other side of this pandemic.

Tinder continues to be one of most loved apps. Match Group is the best way to get involved in this space.

Disclosure: Joey Frenette did not hold shares in the mentioned companies at publication.

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