Sheridan wrote that he "would need a better entry point than the current stock level to become more constructive against the secular themes evident in the long-term Match narrative."
On Wednesday, the company, which runs the Match.com and Tinder services, reported a profit of 43 cents a share for the second quarter, down from 45 cents a year earlier.
Adjusted for nonrecurring items, the company made 49 cents a share vs. 41 cents a year earlier, according to Zacks. Wall Street analysts had expected 45 cents.
Part of the earnings boost came from an influx of new subscribers. The company now boasts 9.1 million subscribers, up 18%, from 7.7 million a year ago.