Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

A New Feature From Meet Group Is Driving Shares 12% Higher Tuesday

By Daniel Miller - Dec 18, 2018 at 12:51PM

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

A new feature called "Battles," designed to increase user and viewer engagement, has investors optimistic about the company's strategic progress -- here's why.

What happened?

Shares of Meet Group ( MEET ), a collection of mobile social entertainment applications designed to foster human connection and interaction, including apps such as MeetMe and LOVOO, are up 12% as of 12:00 PM EST after the company updated investors on recent strategic progress.

So what

A key component to Meet Group's update Tuesday was regarding the new "Battles" feature on the apps MeetMe and Skout. Essentially, Battles pairs two livestreamers and their respective audiences for a live competition that can be in anything from dancing to music to comedy. The Battles last only a few minutes, and the winner is determined by the number of diamonds received from viewer gifts.

A person using a smart phone app

Image source: Getty Images.

"Our mission is to build the best place to meet new people," said Geoff Cook, CEO of Meet Group, in a press release. He added:

We are always seeking novel ways to deliver meaningful connections. We believe Battles will enable connection around talent. We believe it also has the potential to incent viewers to give more gifts to streamers, which is primarily how we monetize video today. We believe the competitive dynamic will strengthen the relationships between streamers and their fans.

MEET Chart

MEET data by YCharts

Now what

While this might not seem like a major deal to many investors, Battles could end up being an important driver for the company's revenue run rate, which exceeded $62 million annualized based on November, up from the $55 million mark during October. The past weekend checked in as the company's highest video revenue day in Meet Group's history.

Beyond Battles, management also has a number of features that it hopes will increase video monetization, including the "12 Days of Gifting" holiday campaign. As the company continues to improve its ability to monetize video through unique features and campaigns, it's clear investors are optimistic about financial results going forward.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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.
MEET

*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 service.

Stock Advisor Returns
633%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

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.