Remember the unwritten rule on wall street make sure your ipos have a first day pop. So this is what we will go over in this video first. Of course we will look and talk about the ipo. We will also take a look at their business fundamentals, competitors valuation and give my price predictions with my reasoning and also talk about the ceo behind this super incredible ipo. Now, if you like, banging stocks and proper fundamental analysis, make sure to hit the sub real quick. If you want to see my public portfolio and my day to day trades get a hundred dollars, we deposit a hundred dollars with etoro now that’s a 100 return on capital. Employees let’s get right into it now, because this video is quite exciting. The company behind this ipo is bumble and bumble is set to go public on february 11, 2021. Under the stock code bmbl, their initial price was targeted at 28 to 30, a share in ipo, but now it is selling at 37 to ‘ as the day before. Going public this already shows super strong momentum, so there is a great probability that this stock will pop from the high 30s to beyond the 50 range, when market opens today by the way people from a few weeks ago, who bought in louvre and sndl when it Appeared on this channel. Congratulations on at least 60 percent gains. The company was founded in 2014 by the ceo, whitney wolf heard and reported as of 2020 quarter.
Three, they have a hectic 42 million active users every month. Bumble is broken into two segments. The first is a dating service and professionally network service called bumblebees where it focuses on personal careers mentoring and also allows networking with people who share the same interest. So, in a nutshell, bumble is a location based dating app that uses the swipe, left or swipe right format which made tinder famous, but the founder of bumble is also the co founder of tinder. This dating entrepreneur wanted to change the dating behavior between men and women. The business is fueled by a utopian vision of social justice, which makes women feel more empowered to make the first move in many aspects of their lives in the bumble workforce. They hire approximately 82 percent of females, and even the executive team mainly consists of female managers. So basically, it is a more feminist based, app and service for the dating app bumble’s approach is to make the internet more female friendly and wants to build a female internet. According to whitney, the companies care for people’s data is extremely important that’s why they do not allow facebook as a login requirement in order to avoid data improvements, whitney is really experienced in the dating app and communication development. Even the well known tinder is founded by winnie. However, that did not end well and she had filed a sexual harassment and discrimination suit against the other tinder co founder. So now you understand some background about the ceo and the company and somewhat we can conclude that bumble is the updated version of tinder before we move on, if you haven’t smashed that like button and hit that stop make sure to do it right now, because there Is going to be a ton of value coming up, so bumble is a free app and it does not have any ads.
So how do they make money? Well, they make money through a variety of premium features that makes it easier and faster to find high quality matches. The first way is a subscription model called bumble boost. This allows better user experience and the algorithm can help users find better matches for individuals. These are the features for bumble boost so make sure to pause. If you want to have a good read, these are the charges and subscription cost for bumble boost. There is also bumble premium, which provides the features for users and further enhances user experience. So please pause to see the features and pricing for bumble premium by the way, if you think about the scalability of bumble subscriptions, it actually has so much potential in the future, because people wouldn’t mind spending some extra money on in app purchases when they are essentially Paying to have a good experience with their potential partner and take tinder, for example, the current leader in online dating services and biggest competitor to bumble. They are able to post a 31 year on year, revenue, growth and 28 year on year, growth in subscribers and now looking at bumble, whitney knows exactly what the market wants, because tinder wouldn’t be the number one player without whitney. The app is super easy to use. Just like tik, tok, instagram or snapchat, you download the app make a profile, then swipe through photos of potential matches and mates, and then you swipe left or right based on your interest and after all these are done.
You are featured on the app based on the algorithm, so the use is really simple and with bumble go in public it will bring some hard time to tinder. Let’S. Take a look at the financials. They have only had five million dollars in revenue in 2016 and in 2020 they announced revenues of 376 million in the first nine months. So if we take the average that will be 502 billion dollars in revenue for 2020., now that’s a hectic 80 fold, revenue increase in just five years, so taking in account the current seven billion dollar valuation that is 14 times plus the sales ratio, which honestly is Quite cheap in the current markets, because bumble growth, speed is insane and like tesla is trading at 26 prices. Sales and neo is trading at 49 plus of sales. So i will give a simple price prediction: based on a 50 year on year, revenue, growth and the fair price to sales of 25.. The market cap for bumble should be around 12 billion dollars, which means around 65 a share if the day it goes public and trades below 50. A share. I will confidently buy into bumble so wrapping up, i do believe bamboo could be a leader in the online dating services and the bumblebees will definitely see good growth as people focus more on online learning and remote work. Their main business operations are the dating services and with whitney previously built up tinder, she knows what the market needs for maximum performance for bumble.
This space is currently empty, but it is likely it will get more crowded. However, only the businesses with the most consumer, friendly apps, can succeed in the field. So if this stock opens below 50, i would open a small position into this stock, because i could see immense potential and a really good chance that this stock will be a 10x from the current ‘ ipo level. These are not financial advice, but guidance and information for all of you, and, as always, i will keep you guys, updated with bumble, so be sure to subscribe and comment below your thoughts on bumble and whether you have ever used the app and what’s your feedback. It will be really beneficial to your viewers and myself to get an understanding of the company hope you found a ton of value from this.