According to Mark Kelley, a Nomura Instinet financial analyst, the next big-ticket business sector will be online dating. In fact, according to Kelley, by 2020 the industry could be worth a mighty $12 billion USD.
The linchpin to Kelley’s estimate is Match Group, the company that owns many of the most popular dating sites. Match Group’s assets include Match.com, OKCupid, Hinge and, most profitably, Tinder. More people have been willing to try online dating in the last few years, and Match Group’s steady acquisition of its competitors has ensured that all money flows back into its pockets. Though Match owns a lion’s share of the industry, however, it is not winner-take-all. In September, Facebook began its own dating service, and dating sites that cater to specific social groups are popping up all the time. Kelley believes that, through this competition, Match’s stock could reach an unprecedented price tag of $66 per share, a 28% rise from the most recent price.
Following Kelley’s coverage, Match’s stock value rose another 5%, with an overall rise of 66% for 2018.
