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Why Glu Mobile Stock Jumped on Friday

By Daniel Sparks – May 8, 2020 at 6:32PM

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The gaming company is getting a boost from consumers sheltering at home.

What happened

Mobile-gaming company Glu Mobile (GLUU) saw its stock jump sharply on Friday. By market close, shares rose 14.5%.

The gaming-stock's gain follows a solid first-quarter earnings report, which featured top-line revenue growth that crushed analyst expectations.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Glu Mobile's revenue jumped 12% year over year to $107.3 million, easily surpassing analysts' average forecast for revenue of $96.4 million. Earnings per share, however, worsened from breakeven in the year-ago period to a loss of $0.06 as the company invested in user acquisition.

Bookings for the quarter were up 15% year over year to $106.5 million.

Management said the company is benefiting from a "shelter-in-place environment" from COVID-19.

Now what

For the company's second quarter, management said it expects bookings to be between $150 million and $155 million.

For the full year, management raised its bookings guidance. The company was previously expecting bookings between $423 million and $433 million in 2020. Now, Glu Mobile is guiding for between $490 million and $500 million in 2020 bookings.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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