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Match's stock rally increased the value of IAC's stake by about 7.8 million.

IAC shares have run up 43% year to date, while Match's stock had more than doubled (up 116%) and the S&P 500 has gained 15%.

"Looking forward, we now believe that almost all of the call optionality (Tinder user growth, pricing power, a non-Tinder recovery) seem solidly priced in at current levels (stock 68% in last 6 months)," he wrote.

"We would need a better entry point than the current stock level to become more constructive against the secular themes evident in the long-term match narrative." Match shares have doubled so far this year, as the S&P 500 has climbed 16%. shot up 12% toward a record high in afternoon trading Wednesday, as a big rally in Match Group Inc.'s stock helped provide a boost.

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Dating apps lead our digital lives, but they don’t always lead to love at first swipe.

Many users air their grievances about various dating platforms on social media, hoping for empathy or even a date.

Companies that turn in better-than-expected earnings are rewarded by better-than-average stock returns.