It’s not always easy to work out whether or not you should purchase a particular stock as a long-term investment option. As a matter of fact, it’s probably one of the more difficult things that you will ever do, provided your goal is to actually do it accurately. There’s no question about it, trying to sort out which stock you should purchase for a long-term option and which ones you should leave alone is enough to give you a migraine. When considering a long-term stock, it has to be one that’s capable of turning in some fairly big dividends, yet stable enough to perform in the long-term. Bumble is one stock that has been making the news quite a bit lately. It’s a dating app specifically oriented to females and as it turns out, it just might be equally well oriented toward purchase for a long-term stock option. However, you have to really dive into things in order to make that decision for yourself. That said, here are some important details that you’ll probably want to know.
Taking the Good With the Bad
As is the case with virtually any stock, it’s not all good news. Remember, the whole thing about the stock market is that it fluctuates, sometimes a great deal. More specifically, Bumble has seen a lot of fluctuation ever since it went public. At times, it has been performing better than anyone could have ever hoped and at other times, it wasn’t performing well at all. That said, it’s also outperforming its biggest competitor, Match. At this particular point in time, there isn’t any other main competitor that has even come close to touching it. Even when it’s not performing at its best, it’s still out-performing Match, and that’s something that’s worth paying attention to. It’s also worth noting that stock market experts believe that it could potentially double or even triple its value within the next five years. When you consider the fact that people typically purchase long-term stock options for roughly 12 months, it might be time to rethink the way that you see long-term stocks, especially if this one is capable of tripling its performance over the course of the next five years. Even if it only doubles, that would still be a very good payday, provided that you purchase enough shares right now. Of course, the caveat is that you might have to wait for five years in order to get these funds, but that is the entire point of a long-term stock option to begin with. If you’re investing for the purposes of retirement or college funds, it could be a very solid investment choice for you.
Learning From Past Mistakes
One thing that makes this particular stock rather appealing and somewhat frightening at the same time is the fact that when it first went public, it was so volatile that it was in serious danger of completely failing almost as soon as it was listed. However, it appears that the company has learned from their past mistakes and that they’ve worked to correct those mistakes, as the stock has been far more stable in more recent times. Everything can make a stock vulnerable to a great deal of volatility on the stock market. Getting a new CEO or having any kind of news that could even potentially be perceived as negative can send an otherwise stable stock crashing down. This was something that Bumble struggled with when they initially went public. It’s also something that they have worked diligently to stabilize ever since. Granted, it’s a bit frightening to think about investing in a stock that has had this type of history but when you really think about it, virtually any stock that has been around long enough to gain any type of footing has had more than its fair share of ups and downs. The fact that they have taken their issues to heart and then taken active steps to correct their issues shows a great deal of initiative on their part. It also means that they intend to stay the course, regardless of how volatile things might get. At the end of the day, this is a good thing because it shows that the company has the commitment needed to stay in the fight, even when things aren’t necessarily going their way.
Experts Agree That Signs Are Positive
Most stock market analysts agree that the company’s willingness to identify their issues and then correct them is a good thing. In fact, they largely believe that this is one of the things that truly sets the company apart from its competition. In many cases, major corporations are unwilling to take the steps they must take in order to get themselves back on track after a slip-up. This often makes them vulnerable. For some reason, a number of them refuse to do anything to stop the bleeding until they have fallen so far off, it’s almost impossible for them to get back. On the other hand, Bumble has approached things much differently. They seem to be more than willing to take a hard look at themselves and see where they need to improve. Even more impressive, they then take whatever action is necessary to make those improvements a reality. That is precisely what makes them so appealing. At the end of the day, no one can say with absolute certainty that any stock will still be a good option several years from now. That said, most of the experts do agree that this one seems to hold more promise than most. Even if you are a cautious buyer, now may be the best time to load up on their stock, with the intention of keeping it as one of your long-term options. If things go well, you could end up rewarding yourself with one of the best paydays you’ve ever had in the stock market.