More Gain Opportunities With Match Group

Let’s go back to a Trade of the Day I wrote on May 14…

It was titled “Match Group Solves Facebook’s Greatest Dilemma.”

If you don’t recall this particular issue, here’s a quick summary…

Quick! Name a company that’s figured out how to do what Facebook can’t. The answer, surprisingly, is Match Group (Nasdaq: MTCH). If you’re not active in the dating scene, Match Group is the company behind dating and hookup apps, such as Match, Chemistry, OkCupid and Tinder.

Last week, in the midst of one of the worst market environments of the last five months, Match Group reported terrific first quarter results. You see, Match Group just added 384,000 new subscribers to Tinder. That means the company now has 4.7 million subscribers, all of whom are paying to use its app.

That’s right. You have a social media app – with paying subscribers – that is rapidly growing. This is a very big deal. Very quietly – and without much fanfare – Match Group has successfully been able to crack the social media code that has plagued Facebook for years… getting users to pay for its service.

Clearly, I was bullish on Match Group.

Just in case there was any doubt, at the close of this article, I said…

Will the gains continue? I’m here tell you that yes, there’s a very good chance they will. Therefore, Match Group shares are ones I’d be looking to buy on dips.

Why tell you this?

Well, take a look at Match Group today…

If you bought shares at $67 back in late May when Match Group took a dip, you’d be up 40%.

Today’s upside explosion came after Match Group reported revenues that jumped 18% to $498 million, which was $9 million more than the Wall Street forecasts.

A good portion of these new gains came from a 39% boost in new Tinder subscribers, which amounts to more than 500,000 new members. Today, the company’s subscriber base stands at around 5.2 million after Tinder’s second biggest increase ever. And, as I mentioned above, these are paid subscribers.

Action Plan: With the same model it’s been using, Match Group is now setting its sights on Japan, South Korea, Egypt and other areas of the Middle East and Africa. So once again, I’ll ask: Will these gains continue? Answer: It sure looks that way.

However, I don’t like the idea of buying Match Group at these highs. But I do like the idea of buying it on any dips of 5% (or more).

For more expert insight on companies like Match Group and specific trade instructions, join me in The War Room today!

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