Jefferies Cautions on Bumble (BMBL) and Internet Sector for 2026 Warning AI Agents and Rising Costs Could Capping Stock Multiples

Bumble Inc. (NASDAQ:BMBL) is 1 of the cheap penny stocks to put in. On December 11, Jefferies lowered the firm’s terms people connected Bumble to $4 from $5 portion keeping a Hold standing connected the shares. The steadfast recommended a cautious stock-picking attack for the Internet assemblage successful 2026. Key risks see constricted borderline maturation owed to rising concern costs and the anticipation that AI agents could bypass accepted platforms, capping the imaginable for higher banal multiples.

In its Q3 2025 net report, Bumble disclosed that its full gross for the 4th was $246 million, which was a 10% diminution year-over-year. The Bumble App accounted for $199 cardinal of this full (down 10%), portion Badoo and different gross fell 11% to $47 million. Despite the top-line contraction, the institution achieved a nett income of $52 million, which was a betterment from the $849 cardinal nett nonaccomplishment successful the anterior year, which had been driven by ~$900 cardinal successful non-cash impairment charges.

The institution is presently prioritizing prime implicit quantity, a displacement that has led to a deliberate 16% diminution successful full paying users to 3.6 million. However, this absorption connected higher-value members resulted successful a 6.9% summation successful Average Revenue per Paying User, which roseate to $22.64. Management besides highlighted the palmy relaunch of BFF (formerly Bumble For Friends), noting improved idiosyncratic retention, though the caller standalone app had not yet generated important gross arsenic of September 30.

Looking ahead, Bumble provided a cautious outlook for Q4, projecting gross betwixt $216 and $224 cardinal (a 14% to 17% year-over-year decline). Adjusted EBITDA is expected to onshore betwixt $61 and $65 cardinal with margins of 28% to 29%.

Bumble Inc. (NASDAQ:BMBL) provides online dating and societal networking applications successful North America, Europe, and internationally. It owns and operates websites and applications that connection subscription and in-app purchases of products.

While we admit the imaginable of BMBL arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.