Please ensure Javascript is enabled for purposes of website accessibility

Why MeetMe, Inc. Stock Jumped 21.9% in March

By Steve Symington - Updated Apr 12, 2017 at 7:08AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The social media technology company jumped after a strong quarterly report last month. Here's what investors need to know now.

What happened

Shares of MeetMe Inc. (MEET) jumped 21.9% in the month of March, according to data provided by S&P Global Market Intelligence, after the budding social media technologist announced strong fourth-quarter 2016 results.

So what

Shares climbed 14% in the first trading day following MeetMe's quarterly release. In it, MeetMe confirmed revenue had increased 47%, to $29.2 million, while adjusted net income rose 56%, to $12.4 million, or $0.19 per share. By comparison, Wall Street was modeling lower revenue and earnings of $28.8 million and $0.16 per share, respectively.

Teenagers using cell phones


Also within that report, MeetMe revealed it has executed a $60 million cash acquisition of fellow social media and mobile tech company If(we), Inc.

"The addition of if(we)'s Tagged and hi5 brands into our portfolio is expected to increase our monthly active users to more than 10 million," added MeetMe CEO Geoff Cook, "giving us even greater scale for monetization and increased profits."

The deal is expected to be accretive to MeetMe's earnings and free cash flow within the first year after the transaction closes later this quarter. 

Now what

As it stands, MeetMe stock has nearly doubled over the past year, including a more than 12% climb so far in 2017 thanks to its strong showing last month. But shares still trade at just 8.2 times this year's expected earnings. And if MeetMe's latest acquisition indeed provides a welcome push toward greater profitability, I think the stock could have plenty of room to climb from here.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Meet Group, Inc. Stock Quote
The Meet Group, Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.