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Bumble shares rally on earnings beat, optimism around AI‑led app revamp

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Bumble new tab shares surged 25% in premarket trading on Thursday, as stronger‑than‑expected fourth‑quarter results and an AI‑focused overhaul of its dating app ​aimed at winning back younger users reignited investor optimism
Chief Executive Officer (CEO), Whitney ‌Wolfe Herd’s push for AI‑driven product revamp comes as Bumble attempts a closely watched turnaround in an online dating industry grappling with slower growth and “swiping fatigue” ​among younger users.
The company said it was gearing up to ​introduce Bumble 2.0, a revamped version of the app that ⁠adds a chapter‑based profile layout to provide more depth beyond the ​traditional swipe interface, and CEO Herd noted Bumble could experiment with a ​no‑swipe experience in some markets while maintaining the swipe feature in others.
“Bumble still has a long road ahead to get back to sustainable revenue growth, but we ​no longer think an ‘underweight’ rating is appropriate with leading indicators stabilising, ​a potential catalyst in the Bumble 2.0 launch in 2Q,” J.P. Morgan analysts said, ‌while ⁠upgrading the stock to “neutral”.
–Reuters–