Match Group Inc. (NASDAQ: MTCH) and IAC/InterActiveCorp (NASDAQ: IAC) each watched their shares fall off a cliff Tuesday afternoon following a big announcement from Facebook Inc. (NASDAQ: FB). Essentially, Facebook said that it plans to get into the dating business.
At a cursory glance, a dating service could increase the time that people spend on the Facebook platform as well as cause big problems for its competitors in the online dating field.
Match’s Tinder app already uses a bevy of Facebook data to populate pictures, hobbies and likes on its platform. Facebook could easily take this model and remake it, similar to what the social media giant did when competing with Snap.
According to Reuters:
A prototype displayed on screens at the F8 conference showed a heart shape at the top-right corner of the Facebook app. Pressing on it will take people to their dating profile if they have set one up.
The prototype was built around local, in-person events, allowing people to browse other attendees and send them messages.
Zuckerberg noted that this will be used for long-term relationships, not just hook-ups. Also considering Facebook’s recent drama with Cambridge Analytica, this dating service is being built with privacy in mind, so that friends will not be able to see a person’s dating profile.
Shares of Facebook were last seen at $171.96, with a consensus analyst price target of $216.06 and a 52-week range of $144.42 to $195.32.
Shares of Match were last trading down over 21% at $37.15, with a consensus analyst price target of $42.56 and a 52-week range of $16.57 to $48.65.
Shares of IACI were recently seen down over 14% at $138.42. The stock has a 52-week range of $79.27 to $166.64 and a consensus analyst price target of $185.70.