1301 ET - Grindr has to strike a difficult balance between driving monetization and not alienating free users, according to Morgan Stanley in a note, initiating coverage with an equal-weight rating and a $14 price target. The analysts call the company a unique asset with high engagement which has doubled revenue per user over the past four years, but caution that it still lags flagship online dating apps in monetization. They say user pushback has increasingly focused on ads and monetization, but Grindr needs to prove it can walk this tightrope. "We see a long runway ahead for additional monetization," the analysts write. "However, we worry that GRND's rapid pace of monetization, especially in advertising, will lead to reduced engagement and could cause GRND to shift prioritization more towards user growth." Grindr is off 1.3% at $11.11 and down 18% year-to-date. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

February 24, 2026 13:01 ET (18:01 GMT)

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