Bumble (NASDAQ:BMBL) shares plummeted nearly 7% in today’s early trading session after the dating platform announced a major leadership transition just a day before its third-quarter results. Whitney Wolfe Herd, who founded Bumble in 2014, is stepping down as the company’s CEO.
Wolfe Herd will transition to the role of Bumble’s Executive Chair after Lidiane Jones fills her shoes as CEO on January 2, 2024. Jones is currently the CEO of Slack, a part of Salesforce (NYSE:CRM).
Bumble, a women-centric dating platform, has seen its share price decline by nearly 33% so far this year. Despite bouts of profitability, the stock has corrected from a high of nearly $77 in February 2021 to the present $13 level.
Jones has over two decades of experience in product development, technology, and marketing. She is expected to oversee Bumble’s adoption of AI into its family of applications.
The shakeup at Bumble’s top rung comes only a day before the company’s third-quarter results. Analysts expect the company to report an EPS of $0.07 on revenue of $277 million for the quarter. In the comparable year-ago quarter, Bumble’s EPS of $0.14 had handily outpaced estimates by $0.13.
What is the Target Price for BMBL?
Overall, the Street has a Strong Buy consensus rating on Bumble. Following today’s price decline, the average BMBL price target of $22.14 implies a mouth-watering 62% potential upside in the stock.
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