Tinder’s New Tier Costs $500/Month

It was a slow-ish news day today, so the talk of the town was Tinder’s new $500-per-month plan. Like other “zero-interest-rate-policy” (ZIRP) darlings, the company’s parent, Match Group, has struggled to keep public market investors happy in a post-pandemic world. 😓

Growth has slowed significantly, so the company is betting big on premium “power users” who will pay $500 monthly for features like exclusive searching and matching. Tinder Select is currently only being offered to less than 1% of users among the app’s most active. But don’t fret; it plans to open up applications on a rolling basis, so you’ll still have a shot if you didn’t make the first cut.

While it sounds wildly ridiculous to most, Match Group has previously experienced success with high-priced subscriptions. Its 2022 acquisition of an invite-only dating app for ambitious career-oriented singles, called The League, charges $1,000 per week for its VIP plan. And the strong results from that program inspired the higher-priced tier for Tinder (and other apps in its portfolio). 💸

Executives hope this “low-hanging fruit” can significantly impact revenue and potentially margins. Its competitors already have higher-priced tiers to monetize their most active users further, so in a sense, it’s essentially playing catch up here.

Match has experienced subscriber declines in the last three quarters but managed to grow average revenue per user YoY. If users aren’t growing, Wall Street at least wants to see the company make more from its existing base. And this new product tier should help accomplish that. đŸ”ē

Whether or not it’s enough to “match” investors back with its stock remains to be seen. $MTCH shares are down 60% since separating from IAC in mid-2020, drastically underperforming the Nasdaq 100. We’ll have to wait and see if investors keep swiping left on the stock in the quarters ahead. 🙄

“Meme Stock” Trend Misses $SDC

Investors hoping that SmileDirectClub would receive the same “meme stock” treatment as Yellow Corporation, Bed Bath & Beyond, and other bankruptcy filers were left severely disappointed. đŸ˜ĸ

Friday after the bell, the dental aligner company announced that it filed for bankruptcy four years after raising $1.35 billion in its initial public offering (IPO). Its Chapter 11 filing and a loan of at least $20 million from the company’s founders will allow it to operate as it tries to reorganize. 

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AMC’s Taylor Swift Boost

Taylor Swift and her “Swifties” are having their time in the sun, bringing rays wherever they go. 🌞

While the NFL is looking to take advantage of Swift’s new potential romance, movie theatre chain AMC also wants to get in on the action, and so far, it appears to be working.

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Canon Pivots From Pics To Chips

The Japanese conglomerate is best known for its printers and cameras but hopes a business pivot will help get its stock price going again. 💡

Today, the company launched a tool that helps manufacture the most advanced semiconductors. Its “nanoimprint lithography” (NIL) system is the company’s attempt to compete with Dutch firm ASML, which leads the extreme ultraviolet (EUV) lithography machine industry. 

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Transportation Stocks Making Moves

Transportation stocks are often on the move, but today, they were especially frisky. So, let’s recap some of the biggest movers from the day. 👇

First up is electric vehicle (EV) maker Rivian Automotive, which fell 23% to 3-month lows. Although the company expects third-quarter revenue to align with Wall Street expectations of $1.29 to $1.33 billion, it surprised investors with a plan to offer $1.5 billion in convertible notes. 

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