The social media giant launched its dating site Facebook Dating in the U.S. on Thursday, a heartbreaker for Match Group (MTCH) - Get Report and its parent IAC/InterActive (IAC) - Get Report as their shares sank with the announcement.
Facebook announced the service last year and it already has rolled out in 19 countries, including Argentina, Canada, Mexico, Singapore, Thailand, and Vietnam. It will be in Europe by early 2020.
Facebook Dating, the Menlo Park, California-based company said in a statement, "takes the work out of creating a dating profile and gives you a more authentic look at who someone is."
Facebook Dating also will now allow users to integrate their Instagram posts into their dating profile and add their Instagram followers to their "Secret Crush" list. By the end of the year, Facebook said, users will be able to add Facebook and Instagram stories to their dating profiles, as well.
Adding Instagram posts to profiles, the company said, "will make it easier to build a better dating profile, show aspects of your life to others, and find shared connections that spark conversation."
Match Group, which provides subscription dating products under the Tinder, Match, PlentyOfFish, Meetic, OkCupid, and other brands, was reaching the tissues, which shares dropping 4.6% to $81.75. IAC/InterActive sank 4% to $244.84.
But somebody apparently still loves Match Group. SunTrust upgraded its rating on the company to "buy" from "hold" before Facebook's announcement, citing Match's "sustained positive momentum" across the company's myriad of brands."
Analyst Youssef Squali said in a note to investors that "positive intra-quarter app traffic and revenue trends for Match's myriad of brands across several geos show sustained positive momentum quarter to date, causing us to raise our estimates and upgrade the stock to Buy from Hold. We expect Tinder to once again print one of its best quarterly net adds ever, with further headroom to grow."
Facebook shares were up 1.3% to $189.60.