Tinder’s match
Snap could have told you, Match: It’s tough to compete with Facebook.
Since Facebook declared May 1 that it was launching its own dating service, shares of Match Group Inc., which owns dating services Tinder, Match and OkCupid, have plunged more than 20 percent.
Merrill Lynch analyst Nat Schindler cut price target estimate for Match shares by 15 percent to $46, citing “evolving competitive risks.”
Facebook’s upcoming service will let users create dating profiles and message likely matches. Most people assume Facebook will offer the service for free. Tinder has over 3 million people paying $10 and up for premium features. If
Facebook dating gains traction, Tinder’s subscription business could dry up.
Snap Inc., owner of the messaging service Snapchat, already faces such a nightmare scenario. Snap’s stock is down nearly 60 percent from its post-IPO high, thanks to the myriad copycat features on Facebook, Instagram and WhatsApp — all owned by Facebook. Facebook and Instagram, for instance, now have a clone of Snapchat’s Stories, a way to show photo and video snippets that disappear after 24 hours.
But don’t swipe left too soon. Aegis Capital analyst Victor Anthony notes that Facebook tried and failed to disrupt search, jobs listings, online marketplaces and payments. Such companies as Google, LinkedIn, eBay and Venmo are still doing fine in those businesses.