The boost only erased some of the software specialist’s recent losses, though, as shares are still down over 20% so far in 2020.
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Investors saw the dating app giant as having the potential to sail through the COVID-19 pandemic without sacrificing much in terms of growth. Its services, including Tinder, likely enjoyed robust engagement as consumers around the world sought to connect through digital means during social distancing efforts.
Offsetting that good news were worries about the impact of reduced face-to-face interactions and a generally weak digital advertising industry.
Match Group said in an operating update on March 31 that the virus is having a mixed impact on the business. While many existing users are turning to its apps to handle more messaging, areas that have been hardest hit by outbreaks are seeing reduced subscription levels. As a result, the company says it will likely land at the low end of its first-quarter growth outlook when that report is released in early May.
It’s still too early to say what the impact on the business might be from there, but executives hope to have more clarity when they announce those detailed operating results.
Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match Group. The Motley Fool has a disclosure policy.