Tinder itself is not a public company but part of Match Group's portfolio, which includes other popular dating apps like Match.com, OkCupid, Hinge, and Plenty of Fish. That's why investing in Tinder means investing in Match Group (NASDAQ: MTCH).
What does a Match Group do?
Match Group was established in 1995 as Match.com. Currently, Tinder is the company's main product.
Tinder is a giant in the online dating world, boasting over 75 million monthly active users as of 2024. Its popularity continues to surge, with January 2024 alone seeing over 46 million downloads. In the U.S., Tinder dominates with a 27% market share in the dating app sector.
Let's have a closer look at Match Group:
Match Group is an American tech company that owns and runs the world's largest portfolio of online dating services.
| Market Cap | 7.832B |
| Income | 653.93M |
| Sales | 3.44B |
| Beta | 1.51 |
| P/E | 12.06 |
| EPS (TTM) | 2.30 |
How to buy Tinder stock?
If you decide to invest in Tinder by purchasing shares of its parent company, Match Group, here's our easy 5-step guide to assist you:
Step 1: Analyze Match Group to Evaluate Your Strategy and Risk Tolerance
Conducting an analysis ensures that investing in MTCH shares aligns with your financial goals and risk tolerance, preparing you for potential market volatility and risks. Start by reviewing the company's annual and quarterly reports, balance sheets, and income statements, which you can find at StockInvest.us.
This step is necessary to understand whether this company fits your financial goals and strategy. For such research to give good results, following questions should be considered:
- What is Match Group (MTCH)?
- What is the company's history, and how has it performed in the past?
- What are the risks associated with investing in the company?
- How does the company compare to its competitors?
- What is the company's strategy for growth?
A lot of information can also be found in the company profile on the brokerage platform.
Step 2: Open A Brokerage Account
To start investing, you will need a brokerage account. There are many brokerage companies on the market. However, they differ in the broker's commission, the number of markets available for investing, the complexity of the platform, and the ease of opening an account.
A brokerage account is an investment account that allows you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs.
To make the right choice, you should compare the fees, conditions, and how easily you understand the platform and the brokerage company's concept.
In the beginning, you can try our pick for the best online broker, which we made after various tests during 2 years.
Using eToro as an example, we will show how you can open such an account:
- Register your account here. Registration is free, after it, it is not necessary to start investing immediately. You can first use this account to practice with a virtual portfolio eToro demo account.
- Provide your personal details, such as your name, email address, and a password for your account.
- Verify your email address by clicking on the link sent to you in an email from eToro.
- Enter additional information, including your date of birth, address, and phone number.
- Upload a copy of your government-issued ID (such as a passport or driver's license) and a proof of address (such as a utility bill or bank statement) to verify your identity.
- Fund your account using a variety of payment methods, such as credit/debit cards, bank transfer, or e-wallets.
Step 3: Decide How Much You Want to Invest and Assess Your Risk Tolerance.
To understand how much you want to invest, you must analyse your financial possibilities:
| Time horizon | Time horizon refers to the time an investor plans to hold an investment. It can be short-term (less than one year), medium-term (one to five years), or long-term (more than five years). The time horizon is an important consideration when choosing investments because it can impact the level of risk an investor is willing to take on and the expected return on investment. |
| Risk tolerance | Risk tolerance measures how much risk an investor is willing to take. Some investors are comfortable taking on higher levels of risk in the hope of achieving higher returns, while others prefer to invest in lower-risk investments to preserve their capital. Various factors influence an investor's risk tolerance, including financial situation, investment goals, and personal preferences. |
| Goals | Investor goals refer to the specific objectives an investor tries to achieve through their investments. These goals can vary widely depending on the individual. Still, some common examples include building wealth, generating income, preserving capital, or achieving a specific financial plan, such as saving for retirement or funding a child's education. Understanding your goals can help you make better decisions and develop a more effective investment strategy. |
Before you choose the investment amount and frequency of contributions, it's essential to ensure that you have:
- An emergency fund that can cover 3-6 months of living expenses.
- A budget for your investing strategy.
It is vital to be ready emotionally as well. A "cold head" is the best helper.
Step 4: Place An Order
Once you have determined how much you want to invest in Match Group (NASDAQ: MTCH), you can place your order to buy stocks.
You have two types of orders to choose from:
- Market order: A market order is an order to buy or sell stocks at the current market price.
When you place a market order, you are telling your broker to execute the trade at whatever the current market price is, which may not be the same price you saw when you decided to place the order.
Market orders are typically executed quickly and are often used when investors want to buy or sell stocks speedily and want to take advantage of a good opportunity. - Limit order: A limit order is an order to buy or sell stocks at a specified price or better.
When you place a limit order, you are essentially setting a "limit" on the price you are willing to pay (or receive) for the stocks.
For example, if you want to buy shares of Match Group, you could place a limit order to buy at $29.40 per share. If the price of Match Group drops to $29.40 or less, your order will be executed. Your order will not be executed if the price never drops to $29.40. Limit orders can be helpful for investors who want to be more precise about the price at which they buy or sell a stock and who are willing to wait for a specific price to be reached.
You need to understand the risks and potential benefits of each type of order before placing one, and consider factors like current market conditions and the volatility of the stock you're interested in.
Step 5: Monitor Your Investment Regularly and Set a Stop-loss
Regularly monitoring your investments and setting a stop-loss can help protect your portfolio.
Read more about the stop-loss method
Keeping an eye on your investments allows you to stay informed about performance and make necessary strategy adjustments.
A stop-loss order can limit losses by automatically selling a stock if it falls below a certain price. While it's important to track your investments, avoid overreacting to short-term market fluctuations.
The stock market can be volatile, with stocks often experiencing short-term dips before rebounding. Setting a stop-loss and adhering to your strategy can minimize risk and help achieve long-term goals. Regularly review your strategy to ensure alignment with your goals and risk tolerance, adjusting as needed to meet changing circumstances. By staying informed and proactive, you can maximize your investment's potential.
Common risks include:
| Market Risk | The risk of value fluctuations due to economic conditions, geopolitical events, and market sentiment. |
| Credit Risk | The possibility that a bond or loan issuer may default on payments. |
| Liquidity Risk | The difficulty of buying or selling an investment without affecting its price. |
| Diversification Risk | The risk of over-diversifying, which can lead to mediocre returns. |
| Emotional and Behavioral Risk | Impulsive decisions driven by emotions like fear or greed. |
| Company-Specific Risk | The risk that an individual company's challenges may cause its stock value to decline. |
Managing these risks involves maintaining a balanced, diversified, and disciplined investment strategy.
If you want to gain practical trading experience and improve your investment strategies, consider opening a demo account. This allows you to practice trading and test different strategies risk-free using virtual money.
