Dating stocks Match and Bumble get a boost from bullish Goldman Sachs note

Yahoo Finance's Julie Hyman and Brian Sozzi discuss the recent jump in Match and Bumble shares after Goldman Sachs and Piper Sandler initiate analyst coverage for the dating stocks.

Video transcript

JULIE HYMAN: I want to talk about a couple of calls that are affecting the dating, the online dating stocks this morning, talking about Match and Bumble. Now both of them being initiated, or I should say, Match initiated new coverage at Piper Sandler. Both of them initiated over Goldman Sachs as well. And both of them initiated with pretty positive commentary here. So the stocks are rising here this morning. In the case of Piper Sandler on Match, saying the company has a pretty good portfolio because it has Tinder, it's not just Match.

And so there is a little bit of a hockey analogy here. The broad portfolio provides several, quote, "shots on goal" for success according to analyst Matthew Farrell over at Piper Sandler. And I know you're digging into the [? Baldwin ?] note as well, Sozz.

BRIAN SOZZI: Yeah, real good note from-- initiation note from Goldman's Alexandra [? Stiger. ?] And Julie, on days like this I wish, I was still a beat reporter writing stories. Because I need to write the story of lots of clicks on this one here, guys. She is pointing to some structural drivers behind these upgrades in Bumble and Match or some bullish outlooks.

One, the erosion of social stigma, interesting. Number two, increased access to the internet and mobile devices, that's always good. And number three, Julie, interesting one here, driver for dating sites, growth in the number of singles. Unclear to me if that's because of the pandemic, a lot of folks breaking up, unclear. But they see it, Goldman, as a structural driver of this industry.

JULIE HYMAN: PS, you may not be a beat reporter, but you know you can write up that note if you want [INAUDIBLE].

BRIAN SOZZI: I'm going to do it right now. In fact, keep talking, Julie. I'm going to type it up.

JULIE HYMAN: I mean, listen, I haven't been on the market for a long time. But I think that the social stigma around dating apps went away a long time ago, didn't it?

BRIAN SOZZI: I ain't touching this one. But, again, bullish outlook.

JULIE HYMAN: I don't know. The single people on the team can close in on that one. But I'm pretty sure that there's no stigma around that and there hasn't been for a little while. But, anyway, all right, we're going to leave that discussion there.