Bank of America Securities analyst Curtis Nagle stated that lower App Store fees, driven by recent Apple legal developments, could boost earnings for companies such as Duolingo, Match Group, and Bumble, according to Benzinga. Nagle estimated that off-app payment adoption and fee cuts could lift EBITDA by up to 3.5%, following Apple’s legal setbacks and new fee policies under the EU’s Digital Markets Act. He emphasized that app store fees are a major cost driver, comprising 17% of Duolingo's revenue and 20% of Match and Bumble's. Nagle raised his price targets for Bumble to $5.50 and Match to $34, maintaining Duolingo at $450. He said Bumble is best positioned to benefit from changes, citing U.S. court rulings that allow developers to direct users to external payment options. All three companies are currently testing off-app payments, with more clarity expected in August earnings reports.
