Match Group falls on weak revenue forecast

Match Group MTCH.O falls 10.1% in pre-market trading after the company forecast Q3 revenue below Wall Street estimates, overshadowing signs of improvement at its Tinder dating app.

The company forecast Q3 revenue between $885 million and $895 million, with the midpoint below analysts' estimate of $891.5 million per LSEG data, citing weakness in its Everyone Everywhere brands.

The weak outlook overshadowed some positive signs in Q2, including a narrowing decline in Tinder's daily active users and 13% growth in Hinge's global monthly active users.

Stock recently traded at 14x expected earnings versus a five-year average forward P/E of 21, suggesting shares may be undervalued, per LSEG data.

Despite the drop, the stock is up about 28% year to date, outperforming the Nasdaq's .IXIC roughly 14% rise; the average rating of 20 analysts covering the stock is "hold".