Facebook announces new dating feature and lets Match Group (MTCH) break down 22%. What’s behind the new dating app from Facebook?
Facebook founder, Mark Zuckerberg, announced at F8 2018 a new feature for the social network. In the future, Facebook users can also use a dating service. However, this is optional and requires an extra opt-in.
How does the new Facebook dating app work?
The goal of the new dating app is clearly defined. Instead of short-term relationships and hook ups Mark Zuckerberg wants to enable long-term relationships and thus connect the users with each other. Currently, 200 million Facebook users are marked as single in their profile.
Users can optionally use the dating app in the future and have to sign up extra for it. The Facebook profile has a button in the future called “Dating Home”. From there it is possible to create the dating profile that your friends aren’t able to see and view.
After completing the details in the new dating profile, it is possible to search for new contacts in events and groups. Users can register for events via the Dating Profile. For example, a street party in a city. Through the dating feature it is possible to find like-minded people at the event and to view their profiles.
If you find the person interesting, it is possible to start a chat and make an appointment at the event. As a security measure, Facebook prohibits the sending of content. The conversation can only be held in text format.
MTCH suffers from Facebook announcement
While Facebook announces the new dating feature, Match Group, developer of the dating app Tinder, drops 22%. This is MTCH’s biggest daily loss since 2001. Mark Zuckerberg announced that he would not compete with Tinder. However, this statement could not save MTCH’s day.
The selling volume was also the highest in recent years. For the time being, investors seem to have withdrawn all trust from Match Group. Will the company’s stock recover? Only time will tell.