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Fly News Breaks for February 6, 2020
FB, MTCH
Feb 6, 2020 | 07:45 EDT
Wedbush analyst Ygal Arounian lowered his price target for Match Group (MTCH) to $75 from $80, while keeping a Neutral rating on the shares. The analyst says that "too much of the growth is coming from unproven areas" and gives him a little pause in light of the still premium valuation, which implies investors are expecting materially higher-than-guidance revenue and EBITDA by the end of the year. The growth opportunity is less straightforward now, he argues, adding that it is less subscriber driven and more ARPU driven. Further, Arounian is still cautious on cannabilization, how competition from Facebook (FB) can impact monetization, and if Tinder subscriber growth can keep up with investor expectations.