Why Shares of Glu Mobile Inc. Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of game developer Glu Mobile (NASDAQ: GLUU  ) jumped as much as 10.8% around noon today after reporting first-quarter earnings and an acquisition.

So what: On a non-GAAP basis, revenue in the quarter was up 90% to $47.0 million and net income came in at $5.4 million, or $0.06 per share. Results beat Wall Street's expectation of $39.5 million in revenue and $0.02 per share in earnings.  

The other big move was buying PlayFirst, maker of Diner Dash and Cooking Dash, for 3 million shares.

Now what: In the grand scheme of things the $13 million paid for PlayFirst isn't a lot of money, especially if Glu can leverage its infrastructure to bump up sales. Growth was also extremely impressive, although management was very cautious with guidance. I like the growth trend and Glu's assets and while I'm cautious about earnings in 2014 I think this company has a lot of upside in mobile gaming.

The biggest revolution in tech
The next step for mobile games is into the living room and companies are fighting for that piece of the tech industry. For the company who gets it right, there's $2.2 trillion out there to be had and there are three companies are poised to benefit. Click here for their names. 

 


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2939762, ~/Articles/ArticleHandler.aspx, 9/3/2014 3:21:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement