Match Group's Surge On Tuesday Was Probably Short Covering

Shares of Match Group Inc MTCH, a provider of dating products that includes the Match, OkCupid, PlentyOfFish and Tinder brands, surged on Tuesday on heavy volume.

Match Group's stock opened for trading on Tuesday at $14.07, hit an intra-day high of $16.09 and closed at $15.86. The stock has gained 17 percent since the start of 2016 and more than 40 percent over the past three months.

Benzinga reached out to Dan Kurnos of Benchmark to discuss the stock's surge.

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According to Kumos, part of Match Group's surge on Tuesday can be attributed to short covering. He also pointed out that many of the "momentum" stocks have recently "regained steam." Some of the names include Amazon.com, Inc. AMZN and Priceline Group Inc PCLN.

Accordingly, many investors have "quietly" reallocated their investment dollars away from top-tier names into these momentum stocks.

"It's a bit of a surprise as the market refuses to correct and most notable players are expecting some downside, but maybe that tells you exactly why we're not headed lower and that the smart money thinks the next leg is still up," the analyst said.