The dating app Bumble recently made a splash on the NASDAQ. The stock jumped over 60% during its IPO and now has a market cap of over $8 billion.
Bumble enters a crowded field – it’s far from the only platform built for people in search of love. However, there are several reasons to be optimistic about this app’s prospects, including the company’s ambitious and young founder.
Want to buy Bumble stock before it has a chance to take off? We’ll show you everything you need to know about how to buy Bumble shares in the UK and cover why we think this stock is a buy today.
- 1 Step 1: Find a UK Stock Broker to Buy Bumble Shares
- 2 Step 2: Research Bumble Shares
- 3 Bumble Stock Price History & Market Capitalisation
- 4 Bumble EPS and P/E Ratio
- 5 Bumble Stock Dividend Information
- 6 Should I Buy Bumble Shares?
- 7 Step 3: Open an Account and Deposit Funds
- 8 Step 4: Buy Bumble Shares
- 9 Bumble Shares Buy or Sell?
- 10 The Verdict
- 11 eToro – Buy Bumble Shares with No Commission
- 12 FAQs
The first step in buying Bumble shares is to find a UK stock broker that offers them for trading. Bumble just IPO’d two weeks ago and it trades on the NASDAQ stock exchange, so not every platform has these shares just yet.
That said, two of our top-rated UK brokers are not only offering trading on Bumble shares – they’re also allowing you to trade with 0% commission. Let’s take a closer look at these two brokers: eToro and Capital.com.
1. eToro – 0% Commission Trading with Excellent Research Tools
eToro is one of the best brokers in the UK for buying US stocks. This platform has more than 800 shares from the NYSE and NASDAQ exchanges and routinely adds new shares, like Bumble, for trading on the day of their IPO.
In addition, eToro allows you to choose between buying shares outright and trading stock CFDs. If you trade CFDs, you can apply leverage up to 5:1 to your trade. In either case, stock trading with eToro is 100% commission-free.
eToro’s trading tools are extremely robust. The broker has a web platform and mobile trading app, both of which give you access to technical charts with over 100 built-in indicators. You also get a market news feed and professional analyst research to help you make trading decisions.
One of the most unique aspects of eToro is the broker’s social trading network, where you can swap ideas with thousands of other traders from around the globe. This is a great way to find news about Bumble shares or to see what other traders, including professionals, think about the stock. eToro even lets you copy other traders, so you can actively trade your portfolio with just a minimal amount of effort.
eToro is regulated by the UK’s Financial Conduct Authority and all UK accounts are protected under the Financial Services Compensation Scheme. In addition, this broker offers 24/5 customer support in case you ever experience a problem with your account.
67% of retail investors lose money when trading CFDs with this provider.
2. Capital.com – Advanced Platform for Commission-free CFD Trading
Capital.com is a top platform for active trading. The web and mobile apps offer advanced technical charts with more than 75 built-in indicators and dozens of drawing tools. You also get access to risk management features like stop-loss and take-profit orders as well as negative balance protection.
This brokerage platform doesn’t offer much fundamental analysis, but you can access professional research and trade ideas from the Capital.com team. There’s also a market news feed and economic calendar to help guide your trades.
Although Capital.com is filled with advanced features, it’s also one of the best brokerage platforms in the UK for first-time investors. The platform has a library of videos that cover topics like how CFDs work and how to trade chart patterns. In addition, Capital.com has a standalone mobile app, called Investmate, that’s dedicated to teaching you how to trade smarter.
Capital.com is regulated by the UK’s Financial Conduct Authority. You can start trading with just a £15 deposit. Plus, this broker offers 24/7 customer support by phone, email, and live chat.
Your capital is at risk.
Bumble is a newcomer to the NASDAQ exchange. As with any new stock, it’s important to do your research to find out what’s driving this company’s growth, whether it’s sustainable, and whether the current stock price reflects that future potential.
So, let’s dive into Bumble’s history and financial data to help you decide whether this stock is a buy today.
Bumble Stock Price History & Market Capitalisation
Bumble held its IPO on the NASDAQ stock exchange on February 11, 2021. The company priced its shares at $43, up from an expected range of $37 to $39 before the IPO. Bumble sold 50 million shares, bringing in over $2 billion in new capital.
The company’s shares initially began public trading at $76 per share, a 77% increase over the IPO price available to market insiders. At the end of the first day of trading, Bumble stock closed up 63.5% above the IPO price.
Over the next few days, Bumble stock hit a high of $84.80 per share before falling to retest the $70 level. Today, the shares are trading at $71 apiece and Bumble has a market cap of $8.2 billion.
Bumble EPS and P/E Ratio
Bumble reported a profit of $68.6 million in 2019, but a loss of $84.1 million in 2020 despite notching a 4% increase in revenue year-over-year.
Based on 2019 numbers, Bumble would have an earnings per share (EPS) of $0.29 and a price-to-earnings (P/E) ratio of 119.5. Based on the 2020 loss, Bumble has an EPS of -$0.35.
Bumble Stock Dividend Information
Bumbe has not announced any plans to pay a dividend either this year or in the future. The company lost money in 2020, so it’s unlikely that it will pay a dividend in the next several years.
Bumble shares are currently worth a lot more than the Wall Street bankers who underwrote the IPO thought they were. But that’s hardly a strong argument that Bumble is overvalued – many companies that IPO’d last year exploded in value as soon as they hit the public market, and they haven’t come down yet.
In fact, if anything, we think that Bumble is an undervalued stock. Here’s why.
Bumble’s Revenue Model
Bumble is, above all else, a dating app. The success of this stock will depend almost entirely on the success of the Bumble app – that is, whether it can gain more users and monetize them effectively.
Bumble operates on a ‘freemium’ model, so users can use the app for free but have to pay for a subscription if they want to unlock more advanced features. Right now, around 9% of Bumble’s user base is willing to pay for features.
We like this model because it provides an easy hook for users to make the switch to Bumble, and then keeps them there once they decide to upgrade to a subscription. On top of that, the subscription fees – which are charged weekly rather than monthly – provide excellent cash flow for Bumble. Bumble also has room to bring in more advertising if it needs to boost revenue, although it has reasonably avoided overwhelming users with ads so far.
Bumble’s Market Share
One of the most encouraging things about Bumble is that it’s been extremely fast to take market share away from its closest competitor, Match Group (which owns dating apps such as Tinder and OKCupid). As of last fall, Bumble has more than 12 million active monthly users – up from just 5 million in 2019.
That fast growth can also be a risk, as it shows that a new app in this space can quickly steal market share from established competitors.
However, we think that Bumble’s growth is better attributed to its unique proposition. Bumble requires that women make the first move, and the app has a zero-tolerance policy for sexual harassment and bad behavior. It’s essentially created a safe space for virtual dating, whereas most other platforms feel like the Wild West.
Whitney Wolfe Herd
It’s impossible to talk about Bumble’s prospects for growth without talking about the company’s founder and CEO, Whitney Wolfe Herd. At 31 years old, she’s the youngest female founder to take a company public in the US and one of only a few women to do so.
She’s also a former founder of Tinder, and her experience with sexual harassment at that company has been a big influence in Bumble’s trajectory. When Wolfe Herd talks about keeping Bumble free of harassment and lewd behavior, she means it. Importantly, users know that and it’s a big part of the reason so many are willing to pay for Bumble’s services.
Wolfe Herd is perhaps the reason to be most excited about Bumble’s future growth prospects. She’s young, ambitious, and has a clear vision for how to differentiate Bumble from its competitors. With her at the company’s helm, look for Bumble to continue growing while doubling down on the aspects that have made the platform so popular among users.
Step 3: Open an Account and Deposit Funds
Ready to buy shares in Bumble? We’ll show you how to get started with eToro, which offers 0% commission trades and high-quality research and analysis tools to help you choose your investments.
To get started, head to eToro’s website or download the eToro app from Google Play or the Apple App Store. Click or tap ‘Join Now’ and then create a new account using your email address. You can also create a new account using your Facebook or Google login details.
In order to comply with UK financial regulations, eToro requires that you verify your identity before trading. You can complete this step by uploading a photo of a government-issued ID like your passport or driver’s license. You’ll also need to upload a photo of a utility bill or financial statement that shows your current address.
Next, deposit funds into your account. eToro requires a minimum deposit of £160, which you can pay by debit card, credit card, PayPal, Neteller, or Skrill. You can also make a deposit by bank transfer, but you must deposit a minimum of £500.
Now you’re ready to buy Bumble shares with eToro. Search for ‘Bumble’ in the text box at the top of the screen, and click on the company when it appears in the dropdown menu. If you’re using the eToro app, tap the magnifying glass to search.
From the Bumble stock page, click ‘Trade’ to open a new order form. Enter the amount of money in US dollars that you want to invest in Bumble. Note that eToro allows you to purchase fractional shares, so you can invest any amount over $50.
You can also select a stop loss or take profit level for your trade. If you’re investing for the long term, you may want to leave these blank.
When you’re ready, click ‘Open Trade’ to buy Bumble shares.
Bumble may be fresh off its IPO, but the stock is priced as low as it’s been since the first day of trading. We think this pullback is a great opportunity to get in on this dating app stock.
To be sure, Bumble shares are expensive. Based on 2019 earnings, the company has an P/E ratio of over 119. However, this isn’t too concerning since it’s backwards-looking and isn’t all that extreme for a high-growth tech stock. Bumble wasn’t profitable in 2020, but the company has demonstrated that it can grow both revenue and its user base and that its business model can be profitable.
Just as important, this dating app has a founder with a clear vision for how Bumble can differentiate itself from the competition and create a comfortable, safe space for online dating. Over the coming year, look for Bumble to retain the users it gained during the COVID-19 pandemic and to continue growing its feature set.
Bumble is one of the hottest new stocks on the US market. While it’s pricey, the shares are currently retesting their price floor – which means right now is an opportunity to get in on this dating app stock at a bargain price.
We’re bullish on Bumble’s long-term prospects thanks to the company’s demonstrated ability to turn a profit, its rapid user growth, and the vision of its young founder and CEO.
Ready to buy Bumble shares? Click the link below to invest with eToro and pay nothing in commissions.
67% of retail investors lose money when trading CFDs with this provider.
What is Bumble’s ticker symbol?
Bumble trades on the NASDAQ stock exchange under the ticker symbol ‘BMBL.’
What was Bumble’s IPO price?
Bumble shares IPO’d at $43 apiece. However, they began public trading at $76 per share and ended the first day of trading at $70 per share.
Who is Bumble’s CEO?
Bumble’s founder and CEO is Whitney Wolfe Herd. The 31-year old is the youngest female founder to bring a company public in the US and one of only a few female founders of publicly traded companies.
Can I buy Bumble stock in an ISA or SIPP?
Yes, you can buy Bumble shares in an ISA or SIPP. You must find a broker that offers both these account types and trading on US shares. Keep in mind that there are limits on how much you can deposit in an ISA or SIPP each year.
Does Bumble have competitors?
Bumble’s main competitor is Match Group, which owns apps like Tinder and OKCupid. Bumble also competes with Facebook, which has its own dating app.
Is Bumble profitable?
Bumble reported a profit of $68.6 million in 2019, but a loss of $84.1 million in 2020.