In the video discussion below, I check in on Bumble following the company’s IPO earlier in the year. Bumble’s stock is down 30% since its IPO, as total growth at the company has somewhat stagnated. However, Bumble users are split 50/50 between Bumble and a Russian dating app called Badoo. Badoo isn’t growing, but Bumble is. In fact, Bumble sales grew strongly in the latest quarter.

I suspect that the Street may be overlooking Bumble because of the underwhelming results of the consolidated company. However, by stripping out Badoo from the company, Bumble results appear much stronger. Bumble App sales grew 55% YoY, which was much faster than Tinder’s 26% YoY growth rate in the latest quarter. Yet, despite its stronger growth rate, Bumble trades at half the valuation of Tinder (MTCH).

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Looking forward, I believe that as Bumble App users continue to grow strongly, user mix will favor Bumble over Badoo. This trend will force the Street to take an interest in the fast-growing company.  As a result, the large valuation delta between BMBL and MTCH (Tinder) will likely close as Bumble’s growth is better appreciated by the market. If we value BMBL based purely on Bumble App sales (excluding Badoo) but use Tinder’s multiple, there is plenty of upside in Bumble’s share price.

Disclaimer: This is not financial advice. Please consult with your financial advisor in regards to any stocks you buy.