Nov. 29, 2021, 9:21 a.m. EST

Bumble stock bounces off record low after Raymond James says selloff is 'overdone'

Shares of Bumble Inc. (NAS:BMBL) bounced 4.0% in premarket trading Monday, after the dating-app operator was upgraded at Raymond James, which cited an "attractive entry point" following the post-earnings plunge. The stock had suffered a record 19.3% drop on Nov. 11, after the company reported a wider-than-expected third-quarter loss, and has plummeted 29.2% since then through Friday's record low close. "We believe the move is overdone; Bumble remains well-positioned in the attractive online dating market with a strong brand and ARPPU [average revenue per paying user] opportunities from pricing optimization and product innovation yet to come," Raymond James' Andrew Marok wrote in a note to clients. He raised his rating to outperform, after starting coverage at market perform in March. The stock, which went public in February at an initial public offering price of $43, has rumbled 38.7% over the past three months through Friday, while the Renaissance IPO ETF (PSE:IPO) has slipped 2.8% and the S&P 500 (S&P:SPX) has gained 1.9%.

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