Please ensure Javascript is enabled for purposes of website accessibility

Why Glu Mobile Inc. Stock Popped Today

By Steve Symington - Oct 12, 2017 at 1:07PM

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 freemium games specialist is up thanks to its new Taylor Swift app and an encouraging analyst upgrade.

What happened

Shares of Glu Mobile Inc. (GLUU) were up 10.9% as of 12:30 p.m. EDT Thursday after an analyst upgraded shares of the free-to-play mobile games company.

More specifically, Benchmark analyst Mike Hickey upgraded Glu Mobile from "hold" to "buy," setting a $6-per-share price target on the stock -- that's a whopping 58% premium from yesterday's close.

Young people holding smartphones


So what

The timing of the bullish call is no coincidence; On Wednesday, Glu Mobile offered investors their first look at The Swift Life, a new social app it's launching in partnership with pop star Taylor Swift.

"We've worked closely with Taylor and her team to bring her creative vision to life," stated Glu Mobile CEO Nick Earl. "The result is a deeply social environment where Taylor and her fans are able to better connect with one another while expressing themselves in an interactive community."

And Hickey, for his part, noted his firm is "cautiously optimistic" for the prospects of The Swift Life, especially considering Swift's "several hundred million social followers across social media networks." 

Now what

Glu Mobile stated yesterday that The Swift Life will first be released in beta for limited territories "soon," followed by a worldwide launch later this year. So investors still have some time yet before we can accurately gauge its success.

But today's upgrade is understandable when you combine Taylor Swift's (arguably) unrivaled social media reach with the fact that Glu Mobile has "worked closely" to ensure the app lives up to her expectations. As such, even with shares having doubled already so far in 2017, it's no surprise to see Glu Mobile stock popping today. 

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

Glu Mobile Stock Quote
Glu Mobile

*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 06/28/2022.

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.