Bumble Valuation

Dear Reader,

Bumble, the online dating site and application, staged an IPO on the Nasdaq last week.

Bumble's current market capitalization stands at 8.26 billion USD.

I believe that Bumble is roughly fairly valued. In its most recent year and quarter Bumble's revenue growth seems to be stalling. What is more, Bumble is barely profitable. With all that in mind, Bumble current valuation seems to be a fair representation of its current intrinsic value.

And all this is premised on the current euphoric state of the US stock market, technology stocks especially. The US and global stock markets are in a bubble. We are living currently in the biggest stock market bubble in terms of market capitalization in history. I believe the Standard and Poor's 500 index is overvalued by more than 35%, the Dow Jones Industrial Average by more than 25 %, while the Nasdaq composite is overvalued by more than 55 %.

However, as long as we are in this euphoric state, the current valuation of many technology companies may seem reasonable. Once reason sets in, though, many technology stocks' prices will fall abruptly. Bumble is a case in point. If we have a stock market crash Bumble's value may fall to 2 billion USD. Now, however, a valuation of 8.26 billion USD for Bumble seems not farfetched.

Investors simply have unrealistic growth expectations for the global economy and companies' profits. And much of this state is helped by global central banks' money creation.

All this will end badly, of course. The bubbles will burst, stocks' values will come crashing down to earth and a severe recession will follow. But due to leading central banks' stimulating policies the stock markets run higher could go on for 2 to 3 more years.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich