Grindr stock jumped on Wednesday after a Morgan Stanley analyst upgraded shares of the LGBTQ+ dating app, citing confidence in new products that could improve monetization.

Nathan Feather upgraded shares of Grindr to Overweight from Equal-Weight while raising his price target to $18 from $15 on Wednesday.

Feather wrote in a research note that he is optimistic about some new products the company is rolling out that could bring in more revenue in the months ahead. This includes a telehealth brand called Woodwork and a high-end subscription tier for users called Edge.

"For a sense of its ubiquity, about half of gay relationships in the US start on GRND. It also plays in a higher-income and more retentive segment than online dating brands like Tinder or Bumble," Feather wrote on Wednesday. "Despite its advantages, the app monetizes 30% below other dating apps -- a gap which we believe can close as GRND expands its product suite."

Grindr shares were 9.7% to $15.73 and were on pace for their highest close since Sept. 29, 2025, according to Dow Jones Market Data.

This is the latest positive development for what looks to be a turnaround year for both Grindr and fellow dating app company Match Group.

Before 2026, dating app stocks were struggling. The industry as a whole has faced pressure amid a general cultural shift away from subcription model dating apps.

Similarly to Grindr, Match has implemented new features to try and improve user engagement, and investors seem pleased with the results.

When reporting earnings on May 5, Match said that March monthly active trends were down 7% year over year, the slowest rate of decline in 31 months, while new user registrations returned to year-over-year growth.

Match stock is up 20% this year while Grindr stock is up 16%.

There are still risks to investing in the space. Bumble -- another dating app company -- shares have dropped 7.4% this year and 50% over the past 12 months amid concerns for user declines. On May 5, Bumble reported that first-quarter total paying users declined by 21% to 3.2 million.

Reuters reported on June 25 that Bumble is exploring a sale, citing people familiar with the matter. Barron's has reached out to Bumble for comment.

Still, Morgan Stanley's Feather thinks now is the time to bet on Grindr's future.

"The company has been working to pivot towards healthier product-led monetization (creating new value for users and then capturing it)," Feather wrote. "That process has taken time, but we now have line of sight to meaningful contribution from two new products that we believe can drive revenue without impacting user growth."

Write to Angela Palumbo at angela.palumbo@dowjones.com

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(END) Dow Jones Newswires

July 01, 2026 14:50 ET (18:50 GMT)

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