Playing the Dating Game? Let’s see if we can get some traction on Match Group (MTCH). (May 01, 2018)FB MTCH IAC TREE IAC TREE LMT
I want to look at some stocks around the “dating thing”. No, we are not going to look at Tinder, I don’t think that is publicly traded and Lord knows I hope it never is.
BUT, here’s the deal: Facebook ( NASDAQ: FB ) decides that they are going to go into the dating game. They are going to have a dating app there, which actually kind of struck me as funny because they got so much information I don’t understand why they just can’t just make arranged marriages because they know more about all of us, at least all of you, than you think they do.
So Facebook ( NASDAQ: FB ) does that and here is what happens: Match Group ( NASDAQ: MTCH ), Match.com, gets absolutely crushed and so does IAC ( NASDAQ: IAC ), their parent company. So I am looking at this today. I don’t really watch these two stocks I just didn’t have them on my list. I was busy trading LendingTree ( NASDAQ: TREE ), which a few days ago kind of looked like IAC ( NASDAQ: IAC ) and Match ( NASDAQ: MTCH ); so I was waiting and waiting and waiting and finally this morning, boom! this was Jimmy Shaker Day where the stock started trading up. So I was really focused on that.
I am showing you this for a reason because I can see this happening with Match ( NASDAQ: MTCH ); actually, it will probably happen tomorrow morning. As I am doing this video this is trading after hours and it is up a bit. So I am looking at going long the stock. In fact, full disclosure, I bought some and here’s why: Because we are seeing the same thing. We are seeing these big, massive overreactions.
I get it, why would anybody who is on Facebook ( NASDAQ: FB ) want to go anywhere else, other than Facebook ( NASDAQ: FB ), for their dating? Why wouldn’t they want to leave Match.com? I will tell you why because I think a lot of people are pretty creeped out about Facebook ( NASDAQ: FB ) but they still like to see their family and friends and share all the stuff that they shouldn’t be sharing; go ahead and put in your Social Security number. Just ask for it, they won’t do anything with it I’m sure.
The bottom line is, I am looking at these, Match ( NASDAQ: MTCH ), IAC ( NASDAQ: IAC ) and I am thinking, yes, that is a big deal. But both of these are bouncing, which tells me that traders think that these are overdone. The same thing here, IAC ( NASDAQ: IAC ), you can see what happens. So after the close these things start to move up; traders think these are overdone.
Now, Zuckerberg’s dating game might send IAC ( NASDAQ: IAC ) and Match ( NASDAQ: MTCH ) completely out of business but we don’t care about this, these are rentals. One, two, maybe three days but probably not. These types of trades probably aren’t going to get us to Thursday. You trade them first thing in the morning; watch how they trade for the first 10-15-minutes and if they continue to be higher after that time then you ride it for a bit. But don’t mistake this for something other than what it is. These are oversold bounces. All I am looking for here is the same type of situation as we got on LendingTree ( NASDAQ: TREE ). I think you can make money if you are doing this type of trade.