Why Glu Mobile, GoPro, and Apple are Surging

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  had fallen more than 24 points as of 11:35 a.m. EDT. Among active tech stocks, Glu Mobile (NASDAQ: GLUU  ) led the way higher, while GoPro (NASDAQ: GPRO  ) continued to rally after entering the market on Thursday. Apple (NASDAQ: AAPL  )  also rose slightly early in the session.

Glu Mobile rises after upgrade
Glu Mobile rose more than 6.5% early in the session after Benchmark raised its rating on the stock from hold to buy. Benchmark cited positive trends in the mobile-gaming space and some success specific to Glu Mobile's products. The analyst believes shares could be worth as much as $5.60 -- a premium of more than 15% from current levels.

Glu Mobile is a developer and publisher of mobile games. Its game portfolio includes more than a dozen titles across iPad, iPhone, and Android devices. It doesn't have anything as well-known as Candy Crush Saga or Angry Birds, but the company is a small cap with a valuation just short of $400 million.

One trend that could benefit Glu Mobile in the near term is the growing expansion of Internet-connected, video game-capable set-top boxes. The Fire TV, released in April, lets users play mobile games on their TV. Later this fall, TVs and set-top boxes powered by Android TV will hit the market; all will be capable of playing Android games.

GoPro continues its post-IPO surge
GoPro was up 28% in early trading. Factoring in today's move, GoPro is not too far from doubling its IPO offering price of $24 per share.

There wasn't any news specific to GoPro's rally on Friday, but investors obviously continued to be intrigued by the prospect of owning shares of the camera company. Unlike other recent IPOs, GoPro is actually profitable and sells a tangible product -- its digital cameras have seen rapid growth in recent years. About three-quarters of the 8.5 million cameras it has sold in its history were sold in the last two years.

Still, at current levels, investors may be skeptical. Although GoPro has seen rapid earnings growth on a year-over-year basis, there are some signs that this trend is beginning to falter. Last quarter, GoPro's revenue actually contracted compared to the first quarter of 2013. GoPro blamed its supply chain, but the company must continue its growth to justify its valuation.

Source: Wikimedia Commons.

Wal-Mart lowers the price of Apple's iPhone
Apple shares rose a bit more than 0.6% early in Friday's session. This came after Wal-Mart slashed the price of the iPhone 5S from $199 to $99 on contract, and cut the price of the iPhone 5C from $99 to $29. 

This could be a ploy on Wal-Mart's part aimed at taking share of the smartphone market from other retailers -- consumers who come in to purchase Apple's iPhone may be more likely to buy other, higher-margin products, including accessories. Or it could be a sign that Apple's hotly anticipated iPhone 6 is nearing its debut. If past years are any indication, Apple will launch the iPhone 6 in September.

If the widespread reports of a larger screen are true, Apple's iPhone 6 could be the best-selling iPhone in the company's history.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

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  • Report this Comment On June 27, 2014, at 11:46 AM, will1946 wrote:

    Go pro seems like a weird situation to me, but then I don't reside in the U.S., so perhaps rich people taking their pictures is normal now.

  • Report this Comment On June 27, 2014, at 12:47 PM, FourthUsername wrote:

    It is not rich people. The market seems to be the 18-35 year old and mostly sports enthusiasts who want to capture their best feats on camera. But also as you watch yourself preforming you can pick out where you can make improvement.

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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!

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Sam Mattera

Sam has a love of all things finance. He writes about tech stocks and consumer goods.

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