Should You Buy the Dip in Grindr Stock?

GRND +2.62% MTCH -0.51% BMBL -0.84%

Grindr (GRND) stock closed roughly 12% down on Monday, Nov. 24 after the company’s board terminated takeover discussions with major shareholders Ray Zage and James Lu.

The NYSE-listed firm best known for its LGBTQ dating app ended negotiations on the $3.46 billion take-private proposal, citing an inability to obtain satisfactory info about definitive funding commitments.

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Following this week’s plunge, Grindr stock is down over 50% versus its year-to-date high set in early June

Does It Warrant Selling Grindr Stock?

Despite the privatization setback that removes a near-term catalyst and the potential $18 per share premium, GRND’s fundamentals remain remarkably resilient.

Grindr continues to dominate the LGBTQ+ dating market with strong network effects and has demonstrated superior growth metrics, including paid user growth of about 17% year-over-year.

This growth trajectory handily outpaces rivals like Match Group (MTCH) and Bumble (BMBL), which are grappling with declining user engagement and widespread “swiping fatigue” among younger demographics.

GRND stock is worth owning also because the firm’s management maintains its full-year revenue guidance at about 26%, demonstrating confidence in its strategic direction.

GRND Shares Are Attractively Priced

From a valuation perspective, Grindr is attractive, trading at about 13 times forward EBITDA estimates.

This represents a discount relative to historical multiples and peer valuations, particularly given the firm’s superior growth profile and expanding margins.

Additionally, GRND’s artificial intelligence (AI)-powered matchmaking capabilities continue to deliver double-digit payer growth and expanding engagement metrics as well.

What’s also worth mentioning is that options traders expect Grindr to surpass $15.50 over the next three months.

Finally, the stock’s relative strength index (9-day) has crashed to less than 30, indicating bearish momentum is exhausting and a near-term reversal may be in the offing.

What’s the Consensus Rating on Grindr?

Investors could also take heart in the fact that Wall Street firms continue to see massive upside in Grindr stock.

According to Barchart, the consensus rating on GRND shares remains at “Moderate Buy” with the mean target of nearly $22 suggesting they could rally more than 80% from here.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com