Bumble’s stock price has taken a beating over the past six months, shedding 21.2% of its value and falling to $2.83 per share. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.
Is now the time to buy Bumble, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Is Bumble Not Exciting?
Even though the stock has become cheaper, we’re cautious about Bumble. Here are three reasons why there are better opportunities than BMBL, plus one stock we’d rather own.
1. Declining Paying Users Reflect Product Weakness
As a subscription-based app, Bumble generates revenue growth by expanding both its subscriber base and the amount each subscriber spends over time.
Bumble struggled with new customer acquisition over the last two years as its paying users have declined by 6.5% annually to 3.16 million in the latest quarter. This performance isn’t ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If Bumble wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products.
2. Customer Spending Decreases, Engagement Falling?
Average revenue per buyer (ARPB) is a critical metric to track because it measures how much the average buyer spends. ARPB is also a key indicator of how valuable its buyers are (and can be over time).
Bumble’s ARPB fell over the last two years, averaging 9.8% annual declines. This signals its platform’s value is eroding when paired with its declining paying users. If Bumble wants to increase its buyers, it must either develop new features or provide some existing ones for free.
3. Revenue Projections Show Stormy Skies Ahead
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Bumble’s revenue to drop by 9.5%, a decrease from its 2.9% annualized declines for the past three years. This projection is underwhelming and suggests its products and services will see some demand headwinds.
Final Judgment
Bumble isn’t a terrible business, but it doesn’t pass our bar. After the recent drawdown, the stock trades at 2.9× forward EV/EBITDA (or $2.83 per share). This valuation multiple is fair, but we don’t have much faith in the company. We’re fairly confident there are better investments elsewhere. We’d recommend looking at a dominant aerospace business that has perfected its M&A strategy.
Stocks We Like More Than Bumble
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
