Match Group vs Nvidia: Which Stock is the Right Investment Choice?
Tuesday, 23 April 2024, 16:30
Match Group vs Nvidia: Which Stock is the Right Investment Choice?
Investors are reconsidering Nvidia as a viable investment option due to its high valuation. Match Group, on the other hand, is emerging as an undervalued player in the consumer internet space. Despite facing challenges such as declining user numbers, Match Group is strategically implementing pricing power and returning cash flow to shareholders. With its low valuation and growth potential in the online dating market, Match Group offers a promising investment opportunity compared to Nvidia.
Declining payers, implementing pricing power
- Match Group stock is off 80% from all-time highs set in 2021.
- Match Group's paying users peaked in September 2022 at 16.5 million, and currently sit at 15.6 million.
- Despite declining user numbers, Match Group has been increasing revenue per paying user, showcasing effective pricing power.
Lots of cash flow to return to shareholders
- Match Group is asset-light and generates substantial positive free cash flow.
- Management has been actively returning capital to shareholders through share repurchases.
- A new $1 billion share repurchase program was authorized at the end of 2023.
The stock is cheap at these prices
- With a trailing P/E of 14 and consistent revenue growth, Match Group appears undervalued compared to market averages.
- Analysts expect continued revenue growth for Match Group, benefiting from the increasing smartphone user base globally.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.