Trending Assets
Top investors this month
Trending Assets
Top investors this month
$MTCH Big Red Flag
I'm a Match Group shareholder and firm believer in both the overall growth of online dating as a whole as well as Match Group's leadership position within it. Yet this quarter the CFO said something pretty concerning which seriously makes me question the competence of this management team in general.

When explaining why they chose not to repurchase any shares during the quarter, CFO Gary Swidler said, "We were concerned by the high volatility and weakness in the equity markets generally in Q4 which drove ours and many others' stock prices down during the quarter."

So let me get this straight. You reported $1.1 billion in adjusted operating income for the year (typically converts about 70% to FCF), you're sitting at about a ~$17 billion enterprise value, and you expect to meaningfully grow in the coming years. Yet you opted not to buy back shares because the "stock was down too much this quarter"?? What does that even mean?

That might be one of the weirdest (stupidest) things I've ever heard a CFO say. Why not just say "hey we knew we were gonna have a terrible quarter so thought it'd be better to just wait to buy back shares"? At least that would make some sense.

Related
Already have an account?