Should You Buy The Dip After GRND Stock Plunged 21%?
Grindr stock has fallen by 21.4% in less than a month, from levels of $22.70 on 6/30/2025 to $17.85 now. Should you buy this dip? Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.
As it turns out, Grindr passes basic quality checks. However, it only has one past instance where it dipped sharply (>30% in 30 days), and returned 5.0% in one year and 13% as peak return subsequently.
That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
Historical Median Returns Post Dips
| Period | Past Median Return |
|---|---|
| 1M | -26.4% |
| 3M | 2.3% |
| 6M | -5.5% |
| 12M | 5.0% |
Historical Dip-Wise Details
GRND had 1 events since 1/1/2020 where the dip threshold of -30% within 30 days was triggered
- 13% median peak return within 1 year of dip event
- 97 days is the median time to peak return after a dip event
- -27% median max drawdown within 1 year of dip event
| 30 Day Dip | GRND Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | GRND | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 5% | 13% | -27% | 97 | ||||
| 11292022 | -38% | 8% | 5% | 13% | -27% | 97 | ||
Grindr Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 30.1% | Pass |
| Revenue Growth (3-Yr Avg) | 32.4% | Pass |
| Operating Cash Flow Margin (LTM) | 27.1% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | -2.6 | |
| => Cash To Interest Expense Ratio | 11.5 |
Dip buying, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.