Tinder scores on Wall Street
Smartphone apps for dating are being used for people in "thin markets" such as those in their 30s. Photo: file
The parent company of smartphone application Tinder has enjoyed a successful first date with the stock market.
Match Group was floated on the stock market for the first time on Thursday evening (AEST), and posted a stellar debut.
It opened trading at $US12 on the NASDAQ, the American and Canadian stock exchange and gained throughout the day.
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It was the lower end of the predicted opening rate of between $US12 and $US14 a share.
Shares in Match jumped 12.6 per cent to $US13.52 ($A19.07) after its initial public offering raised $US400 million for the group spun off of IAC/InterActiveCorp, a US media and internet giant chaired by former Fox chief executive Barry Diller.
The company has been in the limelight for its fast-growing Tinder app, which allows smartphone users to swipe right or left to accept a reject a potential partner and has become symbolic of “hook-up” culture.
But some analysts remained cool on the prospects of the new company.
“We believe the biggest risk to Match Group is what we call the ‘Tinder Catch-22’ – which is that as Match improves the Tinder product, we believe it could not only cannibalise the rest of Match Group, but also make it more difficult to monetise Tinder via subscription,” a note from Brandon Ross at BTIG Group said.
“At the same time, the company must improve Tinder’s product to defend against potential outside competition.”
The company offers dating products in 38 languages in 190 countries, with about 59 million monthly users.
– with AAP