Wednesday, January 6, 2016

Reuters article: Match Group short sellers not looking for long-term commitment

Short sellers borrow shares and then sell them, hoping to repurchase them at a lower price and then return them to their owner. In the meantime, they must also pay interest to the owner.

Goldman Sachs, which was not part of the IPO, recommended selling Match's stock and assigned it a $12 price target, saying that online dating sites have limited growth opportunities.

I agree with Goldman Sachs:
* The Match Group has a big debt because they had overpaid for PlentyOfFish (It was insane, USD575 Million for PlentyOfFish that past its prime 2 years ago).
* The Match Group is only a collection of old and obsolete online dating sites: Match, Meetic, Chemistry, OkCupid, FriendScout24, OurTime, HowAboutWe and many more.
* Tinder will not monetize as expected and can collapse like Skout (problems with minors using it). Also Tinder is in war with other online dating application: Bumble backed by Badoo (powered by a Russian Mafia of hackers & spies)
* The Match Group is not going to innovate and revolutionize the Online Dating Industry in the next years.

SA article: Should You Show Match Group Some Love In Your Portfolio?

The key to long-lasting romance is STRICT PERSONALITY SIMILARITY and not "meet other people with similar interests". 

The Online Dating Industry needs a very powerful algorithm like the "Teller Ulam design". In this case 100 times more powerful than actual matching algorithms. 

Not 100% better, 100 TIMES better

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