Bumble’s shares climbed approximately 3% following the release of robust U.S. retail sales figures for June, which saw a 0.6% increase – outpacing analyst forecasts and reversing May’s decline. For Bumble, whose revenues hinge on paid subscriptions and premium services, this bump in confidence could be a good sign for its future growth after many months of difficult struggles.
The gain arrives on the heels of Bumble’s recent strategic overhaul, which included laying off roughly 30% of its global workforce – around 240 employees – with the aim of reducing costs and enhancing user focus. The reduction is expected to generate about $40 million in annual savings, funds that the company intends to reinvest in product development and improved user experiences. While there was understandable controversy surrounding the decision, it may have been an effective business choice given this sudden stock bump.
Despite the stock’s volatility – marked by 28 changes exceeding 5% over the past year – Bumble may be seeing gradual regrowth compared to last year’s persistent stock dips. The past couple of years have seen the platform struggle to hit expectations and get outperformed by its peers, although that trend may have started reversing as recenty as May of this year.
Bumble’s Q2 earnings report is scheduled for August 5th, which will serve as an extremely important marker for whether or not this growth is already consistent or if Bumble may take a while longer to fully stabilize itself.
