Why Match Group Stock Lost 16% in September
Match Group (NASDAQ: MTCH) shares lost ground last month, shedding 16% even as the S&P 500 rose by 2%, according to S&P Global Market Intelligence. That decline only put a mild dent in longer-term investors' gains, however, given that the stock still ended September up by more than 70% for 2019 overall.
Image source: Getty Images.
Most of the decline came late in the month after the Federal Trade Commission announced a lawsuit against the company. Among other things, the FTC alleges the company has been "using fake love interest ads to trick consumers into paying for a Match.com subscription." In essence, it has allegedly been tempting them with the prospect of exchanging messages with a genuine romantic prospect, when the contacts were coming from accounts already flagged as likely fraudulent.
Source Fool.com
