How to buy, sell and short Bumble shares

How to buy Bumble shares: investing and trading

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.

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Trading refers specifically to speculating on a share’s price movements with derivatives like spread bets and 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.

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Learn about the differences between spread bets and CFDs

With spread bets and CFDs, you’ll be able to:

• Get full exposure with a 20%-25% deposit on almost all of our tier one shares¹
• Trade spread bets without paying any tax²
• Offset your losses against profits for tax purposes with CFDs²

How much would it cost to invest in Bumble?

Bumble is listed on the Nasdaq. So you can 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.

Create a share dealing account to invest in Bumble when it lists

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 spread bets and CFDs. You’ll profit in this scenario if the Bumble share price falls below the price at which you opened the 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.

• 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.