Bumble IPO: how to buy Bumble shares
Bumble is a dating app that’s expected to carry out an IPO this year. Learn what you need to know in order to buy, sell and short Bumble shares – as well as how to analyse the Bumble share price once the company goes public.
How to buy Bumble shares: investing and trading
We’ll offer Bumble shares as soon as the company’s stock is available to the public. But, bear in mind that on the day of the initial public offering (IPO), it could take a few hours for the shares to be available on the secondary market, regardless of the broker you choose.
Investing and trading are similar terms that some people often use interchangeably when they in fact mean different things.
Investing in a stock refers specifically to taking direct ownership of a company’s shares – making you a shareholder eligible to receive dividends if the company pays them. When you’re investing, you’ll profit if the company’s share price increases above the price at which you bought them.
Trading refers specifically to speculating on a share’s price movements with derivatives like CFDs. These are financial derivatives, which means they let you take a position on a stock’s price movements without having to take direct ownership of it.
Trading (buying) Bumble shares
- Create or log in to your trading account and go to our trading platform
- Decide whether you want to trade CFDs
- Search for ‘Bumble’
- Choose your position size
- Select buy and monitor your trade
With CFDs, you’ll be able to:
- Get full exposure with a 20%-25% deposit on almost all of our tier one shares1
How much would it cost to invest in Bumble?
While Bumble hasn’t yet completed its IPO, the company is expected to list on the Nasdaq. If it does, you’ll be able to buy and sell its stock with our best commission on US shares. This means that you’ll be able to invest in Bumble shares for zero commission as long as you opened three or more positions on your share dealing account in the previous month.
Name | FX conversion fee | US best commission | US standard commission |
---|---|---|---|
IG | 0.5% | £0 | £10 |
Hargreaves Lansdown | 1.0% | £5.95 | £11.95 |
AJ Bell | 1.0% | £9.95 | £9.95 |
How to sell Bumble shares: investing and trading
When it comes to selling, investing and trading can also mean different things.
In the context of investing, selling means that you’ll be exiting your investment position. This can be to either take your profits or cut your losses. You can also use investing to go short and profit from any fall in the Bumble share price. To do this, some investors will use a short covering strategy.
Learn more about short covering
In the context of trading, selling means taking a short position with derivatives like CFDs. You’ll profit in this scenario if the Bumble share price falls below the price at which you opened the short position.
Trading (shorting) Bumble shares
- Create or log in to your trading account and go to our trading platform
- Search for ‘Bumble’
- Choose your position size
- Choose ‘sell’ in the deal ticket to go short and speculate on the price falling
- Confirm and monitor your short position
What is Bumble’s business model?
Bumble is a dating app that’s caused a buzz as the main competitor to Tinder. Just like Tinder, swiping right on Bumble shows that you like the other person, while swiping left shows that they aren’t your type. But, Bumble is unique in that if a man and a woman match, it’s only the woman that can strike up the conversation. If it’s two men or two women that match, then either party can start the chat.
Matches on Bumble are also timed: if a conversation hasn’t been started 24 hours after a match, then the users will be automatically unmatched.
One thing to bear in mind for those trigger-happy dating app users, is that swiping right to everyone on Bumble will mean that the algorithm shows your profile to fewer people. So on Bumble, it pays to be selective rather than trying to fill the honey pot.
Bumble’s business model is based around its premium service – which offers certain features that the standard version of the app doesn’t. These features include ‘Spotlight’, which enables users to use Bumble Coins to jump to the front of the match queue. This is claimed to make the user more visible to potential matches, which increases their chances of finding a date.
‘Boost’ is another feature for premium users, which enables those who pay the subscription fee to match again with old connections, swipe without a daily limit, receive a list of others that’ve liked the user, and gives the ability to extend match time by up to 24 hours. Unlike Spotlight which is purchased with in-app coins, Boost is bought with different subscription packages of a week, a month, three months, or a lifetime.
How to analyse the Bumble share price
You should use both technical analysis and fundamental analysis to analyse the Bumble share price once the company has completed its IPO.
- Technical analysis is concerned with chart patterns, technical indicators and historical price action
- Fundamental analysis is based on the fundamentals of a company, including its net revenue or profit and loss statements
You should use a mix of both of these forms of analysis when assessing Bumble’s share price – especially since the company’s share price could be volatile immediately following its listing.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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