Pandemic Has Accelerated the Digital Shift
Bumble stock opened at $76 per share before racing higher to print the daily high of $79.60, according to the TradingView data. Bumble share price then pulled back to close the day at $70.31, thereby concluding a highly successful market debut for the tech business.
“People are building meaningful relationships digitally first, and then the physical follows. This is a really phenomenal shift toward safety and engineering more accountable experiences,” said CEO and founder of the company Wolfe Herd, who was also an early co-founder of dating app company Tinder.
The pandemic has accelerated the digital shift, and people are spending more time on their phones. Renewed lockdown measures mean that people are spending less time socializing but instead are forced to communicate through online communication channels.
The Bumble IPO is another evidence that investors are eager to invest in new shares and get more exposure to the booming technology sector. A day earlier, the online dating business announced it is raising the pricing for its initial public offering (IPO) to $43 per share, which is higher than the previously-announced range of $37 to $39 per share, amid a high interest from investors.
This was the second revision of the IPO pricing plan after the dating app company had upgraded the initial pricing range of $28 to $30 per share to a range of $37 to $39 per share.
“The importance of a woman making the first move is not exclusive to the world of dating, romance, or love. It is a powerful shift, giving women confidence and control. It ignites healthier connections, which lead to relationships rooted in kindness, accountability, and equality,” Wolfe Herd wrote.
The CEO of the app company also became a billionaire yesterday as her 11.6% stake translated into a stake of about $1.5 billion. According to CNBC, Wolfe Herd is the youngest female founder to take a US business through the IPO process, at the age of 31.
The dating app company’s biggest stakeholder is still the private equity company Blackstone, which acquired a majority stake in the online dating business in 2019 for around $3 billion.
Bumble, an online dating business that operates an app under the same name, has made a huge IPO success after it soared more than 77% on its market debut.
About the Author
An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.