Latest Bumble Stock IPO News
05/13/2021: Bumble shares fall sharply after first-quarter report, dipping below IPO price
02/11/2021: Bumble stock opens for trading at $76 per share, 12:34 PM EST
02/10/2021: Bumble Prices $2.2 Billion IPO at $43 per share. Stock trades tomorrow.
02/08/2021: Dating app Bumble raises the size of its IPO offering to 45 million shares
02/02/2021: Bumble Sets Terms for IPO (see below)
01/19/2021: First Look At Bumble – This Could Be Big
01/15/2021: Bumble files for IPO
01/15/2021: Bumble S-1 Filing Released to the Public. Read it here.
12/18/2020: Bumble Is Said to File Confidentially for February IPO
11/23/2020: Dating App Bumble Taps Goldman, Citigroup for IPO Next Year
09/01/2020: Dating App Bumble to Plan IPO at $6 Billion-Plus Value
What is Bumble?
Bumble is a relationship app that empowers women to make the first move. Its primary service is less about hooking up compared to Tinder and more about long-term relationships.
Since its founding, the company has added services for plutonic relationships. BFF is for same-sex friendships, and BIZZ is a career networking app.
Whitney Wolfe Herd leads Bumble. She is a co-founder of Tinder who left to start a new dating app catering to women. On February 11th, 2021, she becomes the youngest female to lead a company in an IPO.
Bumble headquarters are in Austin, TX.
Is Bumble Stock Publicly Traded?
Bumble’s stock will begin trading on Thursday, February 11th.
Pre-IPO shareholders include founders, early investors (venture capital firms), and employees. Many early investors will use the IPO as an opportunity to liquidate ownership.
You can find a current list of Bumble investors at Crunchbase.
Bumble raised at least $1.5 billion in private financing since its founding. Prominent pre-IPO investors include venture capital firms Greycroft and Accel and actress Priyanka Chopra.
When is the Bumble IPO Date?
The Bumble IPO date is now expected Thursday February 11th.
IPO dates are always subject to change due to market conditions. Bookmark this page for the latest Bumble IPO news.
What is the Bumble Stock Price and Terms?
The company will sell 50 million shares at a price range of $43 per share (h/t IPO Boutique) and begin trading Thursday morning, February 11th, raising $2.2 billion.
The price range would value the IPO at more than $8 billion. Goldman Sachs and Citigroup are the lead underwriters.
What is the Bumble Stock Symbol? Bumble Ticker?
According to the S-1 filing released on January 15th, 2021, the Bumble stock symbol will be “BMBL” and trade on the Nasdaq when the IPO completes.
Where can I find the Bumble S-1 Filing?
The Bumble S-1 is now available. Read it here (amended February 8th).
You can find a real-time SEC feed of the latest IPO filings from other companies on the recent S-1 filings page.
Will Bumble Stock be a Motley Fool Stock Advisor Recommendation?
We won’t know until after the IPO if Bumble will be a Motley Fool Stock Advisor recommendation. However, Bumble fits the mold of high-growth, disruptive business models that the Fool typically recommends.
When the Motley Fool recommends a company, there is usually an immediate spike in the price. But Fool newsletter subscribers are notoriously long-term minded and rarely sell, meaning the stock price often continue to rise after a recommendation.
Considering the previous recommendation and performance of Match Group, the Fool will be watching Bumble.
Bumble may also receive a recommendation by the Motley Fool Rule Breakers newsletter or other premium services. Both services have handily beaten the broader market since the early 2000s.
Read this Motley Fool Stock Advisor review to learn about the stock selection methodology and about how you can participate in excellent returns.
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Can you Invest in Bumble Stock? Three Potential Ways
Generally, it’s challenging to acquire shares of high demand IPOs. Most investors will need to settle for buying the stock after it begins trading.
IPO underwriters typically give their best customers access first, then allocate shares to certain institutions and brokers often tied by professional relationships.
When the largest brokers receive IPO shares, they divvy them up amongst their eligible customers, prioritizing their most valued customers first (wealthiest).
For high-demand deals, most retail investors will not get shares.
In recent years, a few brokers have partnered with the IPO investing app ClickIPO to give access to individual investors based on a proprietary rating instead of assets under management.
The ClickIPO rating, known as the Investor Score, rates higher those investors who hold IPO shares instead of flipping them.
Though ClickIPO has not demonstrated the ability to allocate app users with high-demand IPO shares, they’ve executed several dozen IPOs on its platform.
For individual investors without a high net worth, ClickIPO and its partner brokers TradeStation and Webull are the most likely chance of participating in IPOs since the demise of LOYAL3 and Motif Investing.
With that, here are three potential ways to own Bumble Stock:
- Buy Bumble stock after it begins trading
- Buy Bumble stock in the Bumble IPO through a broker
- Buy Bumble stock in the IPO through a potential directed share program (if applicable)
1. Buy Bumble stock after the Bumble IPO
Since acquiring IPO shares is almost always challenging for individual investors, the surefire way to own Bumble stock is to wait for the IPO to complete on Thursday, February 11th, 2021.
Realistically, unless your brokerage account is worth more than $1 million and your broker regularly receives IPO allocations, you are unlikely to access high-demand IPOs.
In some cases, patient investors can buy the stock at or below the IPO price. This is not always true.
Uber, which many predicted to rise steeply, actually fell on the IPO date.
Spending significant effort to acquire IPO shares may not be worth it in the end. You may also spend time and effort to obtain shares but only receive a small allocation, limiting upside gain.
Though IPOs can provide one-day gains north of 20%, even up to 100% in rare cases (such as Airbnb and Doordash), the most significant gains will come during the decade following the IPO if the company is genuinely disruptive.
Take, for example, Netflix, Amazon, or Tesla. You could have bought the stock years after the IPO and still experienced gains of more than 1,000%
If you’re an investor that wants to buy Bumble stock for the long-term, consider opening a position after the IPO and averaging down if the stock falls.
Short-term traders may angle to acquire IPO shares and hope for a short-term pop.
2. Buy Bumble stock in the Bumble IPO through a broker
If you have not received notification of access to the Bumble IPO as this point, you are unlikely to receive an allocation.
Ambitious investors can position themselves to invest in the Bumble IPO once it arrives.
Your chances of getting IPO shares depends on four factors:
- IPO demand
- Your broker and eligibility
- Your assets under management at the broker
- Propensity to flip shares
As IPO demand increases, the chances of receiving IPO shares decreases. Therefore, the IPOs that are most interesting to the masses are the hardest to access.
Most online brokers do not offer IPO shares. Check directly to see if yours does, or look at our list of best brokers for IPO investing.
Legacy brokers, such as Fidelity and Charles Schwab, have minimum eligibility requirements and penalties for flipping shares (selling shortly after the IPO).
But even if eligible, the brokers must sub-allocate whatever limited shares they receive from the IPO underwriters.
This process is non-transparent, but priority is likely given to the wealthiest investors first.
For example, if your account balance is $500,000, and that makes you eligible according to terms, the broker may only have enough IPO shares to distribute to customers with assets of $3,000,000 or more.
This brings us to ClickIPO.
There is no minimum account value required.
ClickIPO prioritizes IPO share distribution by its Investor Score, which measures how likely an investor is to flip shares. Investors more likely to flip shares are considered to be less desirable IPO beneficiaries (in theory).
Therefore, ClickIPO offers a value proposition to underwriters and newly public companies.
Click here to subscribe to Access IPOs and download the free 15-page eBook, How to Invest in IPOs – A Fundamental Guide for Ordinary Investors, which provides more detail on this dynamic.
Regardless of the four above factors, there is never a guarantee that investors will receive shares of a given IPO.
3. Buy Bumble stock in the IPO through a potential directed share program (if available)
Update February 2nd: A directed share program for customers/retail investors does not appear likely.
Occasionally, companies with an existing customer base offer IPO shares to a limited number of customers through a directed share program.
Companies disclose the intent to implement a directed share program in the S-1 filing to the SEC. The program states that a certain number of shares are set aside to allow customers and affiliates the opportunity to buy IPO shares.
Those customers may receive an email leading up to the IPO (shortly after the declaration of an initial price range), asking if they would like to participate.
In the January 15th, 2021 S-1 filing release, there is mention of a directed share program, but no mention of customers.
At our request, the underwriters have reserved for sale at the initial public offering price up to % of the Class A common stock being offered for sale, to certain individuals associated with the Company.
If included, customers can participate on a first-come, first-served basis by opening an account at a specific broker and purchase shares to participate.
Directed share programs have become more prevalent in recent years. Uber, Airbnb, GoPro, and LendingClub all offered shares to customers and affiliates.
The author participated in the LendingClub IPO directed share program through Fidelity. Read how it transpired.
At this stage, there is no indication that Bumble will offer a directed share program. However, it’s possible with their extensive customer base.
Customers should pay attention to the S-1 filing when released. Search for the term “directed share program” to see if there may be an opportunity to participate.
Bumble does not owe shares to anyone. It will only happen if they want to reward customers for helping the company grow. Even so, it’s likely only a small percentage of customers would act quickly enough to understand the opportunity and claim shares.
This website will pay attention and update this section should a directed share program be initiated in the Bumble IPO S-1 filing.
Best Brokers to Buy Bumble Stock
What is the best online brokerage for buying Bumble stock?
Long-term buy and hold investors may prefer a broker not as geared toward frequent trading.
As an individual investor, you’ll want to open an account with a commission-free online broker. That way, you’ll invest most of your money instead of waste it on fees.
I’m a big fan of the online brokerage M1 Finance. M1 Finance is a reliable and robust, no-fee online broker for beginner to advanced investors.
As your investing skills and portfolio mature, M1 is one of the best platforms to scale.
Investing in stocks is 100% free on the platform. They also offer an integrated checking account and low borrowing rates. Read a comprehensive M1 Finance review here.
The platform is more intuitive than old school brokers because it’s built on a modern technology platform. You create portfolio “pies” that contains all the stocks and ETFs you want to own and in what percentages. Add Bumble stock to your portfolio pie once it begins trading.
M1 Finance does not offer IPO access. But it’s my favorite for long-term investing, which is my preferred strategy for disruptive IPO companies.
* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long ABNB, TSLA, BYND.