.August 9, 2024 4:41:00 PM

Citi analysts downgraded Bumble Inc. (NASDAQ:BMBL) from Buy to Neutral, with a price target cut from $12 to $6. The downgrade was due to Bumble’s disappointing outlook, linked to a core app rebuild. Despite a refresh in April, the app still faces challenges at the top of the funnel. Future estimates were significantly reduced, with 2025 and 2026 EBITDA projections down by 33% and 43%. Bumble also revised its 2024 guidance and lacks a clear turnaround timeline, reducing visibility on its outlook.

Management’s focus on a structural rebuild over short-term fixes indicates a deterioration in Bumble’s ecosystem. The analysts are cautious, waiting for signs of improvement before reassessing the stock’s potential. The need for a comprehensive overhaul suggests complex issues within the company that need addressing for long-term success.