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Match Group Stock Surges As Tinder Dating App Owner Added To S&P 500

Tinder owner Match Group will join the S&P 500 on Monday September 20, replacing Dublin, Ireland-based Perrigo Co.

Match Group  (MTCH)  shares surged to the top of the market leaderboard Tuesday after the dating app operator was pegged to join the S&P 500 later this month.

Match, which owns the Tinder dating app and has a market value of around $41 billion, will be added to the benchmark on Monday, September 20, replacing the drugmaker Perrigo Co.  (PRGO)

Cloud computing and software group Ceridian HCM Holding  (CDAY) , as well as insurance group Brown & Brown  (BRO)  will join Match in the S&P 500 on September 20, with benefits provider Unum  (UNM)  and oilfield equipment group NOV Inc.  (NOV)  heading for the exit. 

Match Group shares were marked 7% higher in early  trading Tuesday to change hands at $158.50 each. 

Match Group, which also owns the Hinge and OKCupid dating apps, said last month that its expects third quarter revenues in the region of $790 million to $805 million, but noted that a surge in Delta-variant coronavirus infections is holding back growth in important markets in Asia.  June quarter revenues rose 27% from last year to $708 million, Match Group said.

"We're actually watching mobility trends and restrictions more closely because they seem to have a larger effect (than infection counts),' CEO Shar Dubey told investors on a conference call on August 4. "As vaccination rates gain steam first in the U.S. and then in Europe, we saw mobility increase, and it reflected in our business trends in Q2. In a few -- in actually several markets in Asia, even today, including Japan, which is our second largest revenue market, there are different degrees of lockdowns and restrictions in place."

"And that certainly impacts mobility and our metrics. With respect to what's going on in the U.S. with the Delta surges in recent weeks, so far, they don't appear to have any impact on mobility," she added. "And they may not, unless real restrictions are put in place."