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.
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