Why Bumble Shares Are Buzzing After Hours Thursday

Dating app company Bumble Inc (NASDAQ: BMBL) shares are trading lower Thursday after market close. Here’s why.

What Happened: Shares of Bumble are trading lower Thursday after the company announced a secondary share offering, according to Benzinga Pro. 

The company said that selling stockholders affiliated with Blackstone Inc (NYSE: BX) and its founder Whitney Wolfe Herd are selling 12,500,000 shares in a public offering. Blackstone also said it would grant the underwriters a 30-day option to purchase up to 1,875,000 additional Bumble shares.

Wolfe Herd also serves as the CEO of Bumble. 

Bumble said it is not selling any shares in the offering and will not receive any of the proceeds from the sale.

Why It’s Important: The share offering comes shortly after Bumble reported fourth-quarter financial results on Feb. 22.

The company reported earnings per share and revenue that beat Street estimates in the fourth quarter.

Shares of Bumble are up 20% year-to-date in 2023 but remain down significantly from their November 2021 IPO pricing of $43. Shares of the dating app opened for trading at $76 on their first day of trading.

BMBL Price Action: Bumble shares are down 7.92% to $22.67 at the time of writing Thursday.

Photo via Shutterstock.