Bumble Inc. (BMBL) is set to beta test a new AI-driven dating platform this fall, shifting focus from profile photos to psychological factors. This innovation is crucial as recent research indicates that 79% of Gen Z is losing interest in traditional swipe-based apps, with 78% of matches terminating after just three messages. Unlike competitors like Match Group (MTCH), which employs AI for photo selection, Bumble’s approach combines advanced AI techniques with psychological insights to foster meaningful connections. However, the company faces challenges; its user base of paying subscribers dropped 8.7% year-over-year, resulting in a $367 million GAAP net loss in Q2 2025. The new app will operate independently while user demand is assessed, with pricing details pending. Bumble’s strategic shift aims to combat swipe fatigue and enhance user engagement, potentially restoring revenue growth. Currently, BMBL stock is rated a Hold, with an average price target of $6.77, suggesting a 9.72% upside.
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