BTIG analysts said Tuesday that they believe investors should not participate in the initial public offering of Match Group, which owns several dating sites, due to an unattractive valuation and the risk of Tinder's outperformance of the rest of the companies. Calling the company's biggest risk a "Tinder Catch-22," the analysts say Tinder is improving its product so much that it may take away membership from Match's other products, while also making it hard to monetize. Outside of Tinder, Match Group's other businesses have lost paid subscribers over the last 12 months, according to the analysts. At the same time, Tinder has to improve its offerings to beat possible competition. The Match Group IPO is expected to price Wednesday and has a current offering range of $12 to $14.
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