Market Overview

Online Dating Stocks Plummet After Facebook Says It Will Have New Features To Create 'Real Long-Term Relationships'

Online Dating Stocks Plummet After Facebook Says It Will Have New Features To Create 'Real Long-Term Relationships'
Rock Holdings To Buy, From IAC/InterActiveCorp
IAC/InterActiveCorp's Q3 Earnings Outlook
88 Biggest Movers From Yesterday
Market Dumps Match Group Despite Q3 Beat
Match Scores Relative Strength Rating Upgrade; Hits Key Benchmark (Investor's Business Daily)

Amid criticism of fueling social dissolution, Facebook, Inc. (NASDAQ: FB) is intent to facilitate relationships.

Now, the platform that branded itself as a “friends” zone is ready to take the next step.

What Happened

CEO Mark Zuckerberg announced Tuesday at the Facebook Developer Conference that the firm’s main platform would soon include dating features, allowing the company to take part in an exploding online dating scene.

"If we're focused on helping people build meaningful relationships this is perhaps the most meaningful of all,” Zuckerberg said.

Facebook will build out features to develop “long-term relationships, not just hookups.”

Why It’s Important

IAC/InterActiveCorp (NASDAQ: IAC) and Match Group Inc (NASDAQ: MTCH) were in freefall on news of competition. At time of publication, Match had fallen as much as 16.5 percent and IAC 11.5 percent, and both were continuing downward.

One analyst considers the sell-off unfounded, though.

"I can’t see Facebook supplanting Match any time soon – too big a moat," Benchmark analyst Dan Kurnos told Benzinga. "If you want a company that is great at getting people to like things, FB is for you. Aggregating all of that and matching people up based on common interests is not an overnight project, and requires a lot more than machine learning."

Related Links:

UBS Revises Outlook On IAC, Parent Company Of Match And Angi Homeservices

Match Group Is a Global Online Dating Leader, But Shares Are Fairly Valued, JPMorgan Says

Latest Ratings for IAC

Nov 2018MacquarieInitiates Coverage OnOutperform
Nov 2018Wells FargoMaintainsOutperformOutperform
Oct 2018NomuraInitiates Coverage OnBuy

View More Analyst Ratings for IAC
View the Latest Analyst Ratings

Posted-In: Analyst Color News Events Top Stories Exclusives Analyst Ratings Movers Tech Best of Benzinga


Related Articles (FB + IAC)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

TRON's TRX Gains On Alibaba Partnership Rumor: What's Next?

Tapestry Falls 15% Following Q3 Earnings; Kate Spade In Focus