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What is Bumble and how can I buy shares?
Shares in dating app owner Bumble surged over 63% on their first day of trading in New York.
The stock opened at $76 on its Nasdaq debut on Thursday, which was well north of the initial public offering price of $43, before closing at $70.31. The Blackstone-backed Bumble is the latest in a string of hit IPOs that have defied the pandemic and underlined that investors are hungry for new listings and continue to pay a premium for growth. It follows in the wake of strong debuts for the likes of Airbnb, DoorDash and Snowflake.
Bumble reported slowing revenue growth in the first nine months of the year – the fact that people cannot get out to meet other people due to the pandemic could be a factor. Revenues grew by 14.9% over the same period in 2019 to $417m, but this was down from 35.8% revenue growth a year before. Over the first nine months of 2020, the company swung to a net loss of $117m from $69m profit in the same period a year before.
The company – which owns apps that allow women to ‘make the first move’ – was launched in Texas in 2014. Following a reorganisation of the business, founder Whitney Wolfe Herd received a $125m pay out. In 2019, Blackstone bought a majority stake in the company, valuing it at $3bn at the time. After the first day of trading the market cap stood around $13bn.
How to trade Bumble shares
Trading: Open or create your trading account. Choose whether you wish to trade CFDs or spread bets (if applicable) and then search for ‘Bumble’ in the search bar, or find it under ‘Shares’ and then select ‘Global’ > USA > ‘Technology’ from the dropdowns.
For investing, you will require a share dealing account. Read our guide on buying US shares in the UK.