In today's video, I look at Glu Mobile(Nasdaq: GLUU) and explain why I'm giving the stock an outperform rating on my profile in Motley Fool CAPS. The company, which develops games for mobile devices and tablets, is well positioned within the global "freemium" space -- a market that is on track to hit $16 billion by 2016. In its latest quarter, Glu Mobile reported 192% revenue growth year-over-year due to smartphones.
Another upside is that unlike rival game maker Zynga(Nasdaq: ZNGA), Glu doesn't depend on Facebook(Nasdaq: FB) for revenue. Last year, Zynga accounted for 15% of Facebook's revenue in its first quarter. While that's a sizable amount, it is down from 19% in the prior period. Because Zynga currently relies on Facebook for user growth, it doesn't have the same appeal as Glu. Zynga's stock has lost more than 33% of its value year to date. Meanwhile, shares of Glu have soared nearly 48% this year. Looking ahead, I think Glu Mobile still has room to run, despite its upbeat performance to date.
I've been an analytical writer for The Motley Fool since 2011. I cover the sectors of Consumer Goods, Technology, and Industrials. Connect with me on Twitter using the handle, @TamaraRutter -- I'd love to hear from you!