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Dating App Bumble Soars in Trading Debut

Dating app Bumble opens at $76 and skyrockets in its first day of trading.
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Bumble  (BMBL) - Get Bumble, Inc. Class A Report, the dating app that says it seeks to empower women, skyrocketed in its market debut Thursday on the Nasdaq.

The stock opened at $76 a share. Its initial public offering was priced Wednesday at $43 a share.

Bumble raised $2.15 billion in its IPO, expanding the size of the listing and pricing the shares above a marketed range.

“We purpose-built the Bumble app with features designed to empower women, giving them more control in relationships," Bumble said in its prospectus. "We believe that by empowering women through rewriting relationship dynamics, we can make the world better for everyone.”

Bumble has a market value of about $8.2 billion based on the outstanding Class A shares listed in its filings. 

Private-equity firm the Blackstone Group took a majority stake in Bumble’s parent company, MagicLab, in 2019, in a transaction that valued it at $3 billion.

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The Bumble app was started in 2014 by CEO Whitney Wolfe Herd, who previously co-founded the dating app Tinder.

At 31, Wolfe Herd is the youngest woman to take a large company public in the U.S. as CEO, according to Bloomberg.

For the nine months ended Sept. 30, Austin, Texas-based Bumble had a pro forma net loss of $28 million attributable to owners and shareholders on revenue of $413 million, according to its filings.

TheStreet's Jim Cramer said the stock was a buy at its debut as it has built a business of providing a safe place for dating.

"It’s a gentle entrant into a business that is essentially an app," Cramer said.

At last check, Bumble shares were at $74.36, up 72.93%.