One Stock I Continue To Love!

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In 2016, Match.com (NASDAQ: MTCH) was spun off by IAC Interactive Corp. at a price of $15 a share.

You may not realize this, but Match is the owner of over 40 dating apps and services, including Tinder, Match.com, and OKCupid.

If you had the good sense to purchase shares of Match at the time of its IPO (initial public offering), you would be up a whopping 373%, or almost 4 times your money.  Those returns are phenomenal by any measure.

However…that’s the past.  Investing is about the future.

Match reported earnings on February 6th, and their revenues and operating income were both up – 21% and 18% respectively – year over year.

The main growth driver for Match is the Tinder app.  The number of average subscribers increased by 40% year over year to 4.3 million.  That is tremendous growth, but 4.3 million subscribers seems like a fraction of the number of subscribers they could have in five to ten years!

As long as people continue to look for love and companionship the potential for Match is huge!

What about competition?  Well, there were some rumblings last year about Facebook (NASDAQ: FB) getting into the online dating game.  Initially the stock price of Match dropped 20% on the news.  It dropped another 20% over the next two months, when the market sold off.

As of this writing, though, the stock has recovered almost all of its loss, and is currently around $56 a share.

Match is the dominant player in online dating, and I believe they will continue to grow and increase their lead for as long as humans need love.  If you’re looking for a stock to start investing in, Match is a very strong candidate.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

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The $500 Fortune, Part 2

Yesterday, I listed some stocks that, had you invested $500 in them years back and held, would have increased your wealth exponentially.  Of course, I was then asked, “What stocks can I do that with today?”  Here is a list of five that I like:

  1. Tencent: In case you didn’t know this, China is the most populous country in the world.  They will soon have a middle class that consists of 500 million people.  It makes a great deal of sense to have some exposure to China in your investment portfolio, and one of the best ways – if not THE best way – is thru owning shares of the largest video gaming company in the world!  Tencent is already a big company, worth half a trillion dollars.  I think that it has the possibility to one day be worth multiple trillions of dollars.  I firmly believe that this company can make you rich!
  2. The Trade Desk is a small digital advertising company with a market value of $1.4 billion.  Trade Desk uses artificial intelligence (AI) to aggregate and analyze data from different websites in order to help companies improve their marketing.
  3. Match: My selection of Match.com may surprise some people…however, did you know that Match owns Tinder, OKCupid, and Plentyoffish?  Tinder is the third highest grossing app in Apple’s App Store, behind Pandora and Netflix.  The truth of the matter is online dating has been a huge trend and will continue in the future.
  4. Activision Blizzard: It may be hard for non-gamers to believe this, but the gaming industry is HUMONGOUS.  One of the major players is Activision Blizzard.  Although the company has been one of the best investments over the last 20 years, the next 20 years look absolutely just as bright!  Esports, which are organized video game tournaments, are on track to be an absolutely colossal moneymaker for Activision Blizzard.
  5. Roku is a small company with a market value of under a billion dollars.  Roku is the fastest growing streaming platform in the United States.  Streaming video on demand is obviously the direction the world is moving toward, as evidenced by the phenomenal success of Netflix.  Roku has the platform that could eventually make it the dominant streaming video company.

If you’re just getting started or you’re looking to add to your portfolio, these five companies are ones you may want to watch!

If you haven’t checked out my ebook yet, head over to Amazon.  And please, please, share your thoughts and questions in the comments!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *