Remember match.com? (Symbol MTCH)? I’ve written about it many times, and I highlighted it six months ago in a post called Favorite Featured Three in which I shared my three favorite charts for short positions. Every single one of these three isn’t just down, but has been blown completely to smithereens. Here are the percentage changes for the time since my post:
It’s that last one in particular which inspired this post, since its already severe drop has been augmented by this beauty from last night:
So now the company has lost ALMOST 70% of its value, here is their hilarious explanation:
A large reason for the surprising loss was a writedown of $217 million on the acquisition of Hyperconnect, an Asian dating company attempting to integrate “metaverse” features. Match paid more than $1.7 billion for the company last year, but new Chief Executive Bernard Kim said that he is slowing down development and spending. “I believe a metaverse dating experience is important to capture the next generation of users, and Hyperconnect has been innovating in this area. However, given uncertainty about the ultimate contours of the metaverse and what will or won’t work, as well as the more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in metaverse at this time,” Kim wrote in a letter to shareholders Tuesday. “We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.”
TRANSLATION: Spending almost $2 billion on this ridiculous crap was a horrendous mistake I wish we could undo, but we’re stuck with this disaster, so – – terribly sorry about all this.
