Friday’s Headlines: Investors Swipe Right on Bumble?

Friday’s Headlines: Investors Swipe Right on Bumble?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Bumble (BMBL) +26.8%

Redfin (RDFN) +21.3%

Upstart Holdings (UPST) +17.1%

Etsy (ETSY) +12.9%

Roku Inc. (ROKU) +11.2%

Moving Down ⬇️

Ford Motor Company (F) -3.0%

Apple (AAPL) -2.7% Group (TCOM) -2.5%

Twitter (TWTR) -2.2%

Microsoft (MSFT) -2.0%

1. Shares in dating platform Bumble (BMBL) soared by over 26% yesterday following a wholly positive earnings call late on Wednesday. The company reported earnings per share of $0.13 against an expected loss of $0.03 per share, on revenue of $211.2 million versus a predicted $208.4 million. Much of this was driven by a 31% year-over-year spike in paying users of the firm’s flagship Bumble app. As explained by CEO Whitney Wolfe Herd, “Bumble App drove substantial revenue growth across the US and international markets and delivered a significant sequential increase in paying users by continuing to focus on a woman-first experience built upon trust, kindness, and safety.” Bumble also maintained its already impressive guidance for the full year, despite headwinds in the form of the ongoing Russian invasion of Ukraine. Find out more on the story here.

2. Twitter (TWTR) stock continued to slide yesterday as it slowly loses more and more value following the announcement of a takeover by Tesla’s (TSLA) Elon Musk. The social media platform closed the day trading at $45.08 — far below the figure of $54.20 that Musk agreed to pay at the end of April to acquire the firm. This has led to speculation that the deal might fall through. Musk will have to pay a breakup fee of $1 billion to walk away, but could he be tempted to take that hit in a bold attempt to return to the table with a lesser offer? Twitter has been slightly immune to the wholesale tech sell-off of late, largely due to Musk’s impending deal. However, any change in circumstances here could have huge ramifications for its stock at a time when the market is both highly volatile and overly reactionary. Read more here.

3. In news reminiscent of early 2021, both GameStop and AMC popped yesterday, with trading on the former having to be halted several times for volatility. GameStop jumped by over 30% at one stage before settling up 10%, while AMC finished the day up 8% following an initial surge of 18%. Does this mean the market is set for another round of meme stock mania? Not quite. With both of these stocks still a long way off of their all-time highs seen last year, it now becomes much easier for even one large fund to force somewhat of a short squeeze. Any sign of movement or news related to these meme stocks can trigger a hyper-volatile reaction, with retail traders still searching for gains similar to last year's infamous meme stock run. With short interest in GameStop and AMC currently at roughly 21% and 20% respectively, this could very well have been the spark that ignited this sudden movement. Find out more here.

Pádraig BolgerPádraig Bolger

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