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Competition, Russia Exit Weigh on Bumble Stock

Overall options volume is running at 9 times the intraday average

Digital Content Manager
Aug 11, 2022 at 11:27 AM
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The shares of Bumble Inc (NASDAQ:BMBL) are struggling for direction, last seen down 0.6% at $34.28. The dating name reported worse-than-expected second-quarter losses of 3 cents per share and revenue of $220.45 million, which came in above estimates. The company's exit from Russia and Belarus amid the war in Ukraine, combined with competition from the likes of  Match Group (MTCH), led Bumble to lower is full-year revenue forecast.

Analysts are having mixed reactions to the results. The security has received three price-target cuts this morning, including one from Morgan Stanley to $27 from $28. Meanwhile, RBC and Piper Sandler raised their price objectives to $33 and $30, respectively. Of the 10 firms covering BMBL, six carry a "buy" or better rating.

It's also worth noting short interest is on the rise, up 14.2% over the last two reporting periods. The 9.50 million shares sold short now make up 7.5% of the stock's available float, or more than three days' worth of pent-up buying power.

Options traders are already chiming in as well, with 4,494 calls and 5,565 puts across the tape so far, which is nine times the intraday average. The most popular contract is the August 30 put, followed by the 40 call in that series.

The equity is today testing a floor at the $33 level, which captured multiple pullbacks in July. The newly emerged 320-day moving average has been keeping a lid on shares, though, which had their last rally rejected just north of the $39 region. Year-over-year, BMBL is down 28.2%.

 
 

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