Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of game developer Glu Mobile (NASDAQ:GLUU) jumped as much as 10.8% around noon today after reporting first-quarter earnings and an acquisition.
So what: On a non-GAAP basis, revenue in the quarter was up 90% to $47.0 million and net income came in at $5.4 million, or $0.06 per share. Results beat Wall Street's expectation of $39.5 million in revenue and $0.02 per share in earnings.
The other big move was buying PlayFirst, maker of Diner Dash and Cooking Dash, for 3 million shares.
Now what: In the grand scheme of things the $13 million paid for PlayFirst isn't a lot of money, especially if Glu can leverage its infrastructure to bump up sales. Growth was also extremely impressive, although management was very cautious with guidance. I like the growth trend and Glu's assets and while I'm cautious about earnings in 2014 I think this company has a lot of upside in mobile gaming.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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