Match Group Gains as Morgan Stanley Says Weakness Overdone
2022.04.22 17:51
By Sam Boughedda
Investing.com — Match Group Inc (NASDAQ:MTCH) stock is gaining Friday morning after Morgan Stanley analyst Lauren Schenk said the recent weakness is overdone.
The analyst said in a note that they are “buyers on recent weakness as we believe 1Q and macro fears are overblown.”
The recent move lower was caused by the Netflix (NASDAQ:NFLX) read-through, rising Covid cases in Asia, mixed reads of first-quarter third-party data relating to app downloads, and incremental FX headwinds.
However, with the stock at $77, they believe a 1Q miss and full-year revenue and EBITDA guide down are now priced in, but better than feared.
“Bottom line, we think the risk/reward from here skews positively into the print given significantly more negative sentiment and less crowded positioning and would be buyers of the pullback,” wrote Schenk.
Match Group stock is trading 4% higher Friday.
