Glu Mobile Inc. (NASDAQ: GLUU)
Glu Mobile is an incredible company, and their stock is really showing it today. The stock is climbing as the result of strong earnings and a partnership with a big star, Taylor Swift! Today, we’ll discuss what we saw from earnings, the details of the partnership with Taylor Swift, how the market reacted to the news and what we can expect to see from GLUU moving forward. So, let’s get right to it…
GLUU Reports Strong Earnings
As expected, Glu Mobile reported its earnings for the fourth quarter of 2015 after the closing bell yesterday. The report proved to be overwhelmingly positive with both earnings and revenue coming in ahead of expectations. Here’s what we saw…
- Earnings – For the fourth quarter, analysts expected for GLUU to report a loss in the amount of $0.03 per share. However, the company blew away these expectations by producing positive earnings in the amount of $0.02 per share.
- Revenue – GLUU also reported very strong revenue for the fourth quarter. While analysts expected the company to produce revenue in the amount of $50.2 million, the company actually reported revenue for the quarter in the amount of $57.9 million.
GLUU Partners With Taylor Swift
As if positive earnings and revenue weren’t enough to excite investors, Glu Mobile had more positive news to offer. The company has entered into a partnership with a massive pop icon known as Taylor Swift. The partnership is a multi-year gaming partnership with the first game set to be released in late this year. Celebrity games have done very well for the company in the past. In fact, the company achieved massive success with a game known as “Kim Kardashian: Hollywood”. So, the partnership is likely to lead to further strong success for GLUU. In a statement, GLUU CEO Niccolo de Masi had the following to say…
“Bringing with her over 227 million social followers, I am thrilled to welcome Taylor Swift, an award-winning singer, musician and songwriter, to Glu’s family…”
How The Market Reacted To The News
As investors, we know that positive news generally has a positive effect on the stock the news is about, that’s exactly what we’re seeing from GLUU as a result of both the strong earnings and the fact that the company has partnered with the iconic singer, Taylor Swift. Currently (3:14), GLUU is trading at $2.59 per share after a gain of $0.58 per share or 28.86% so far today.
What We Can Expect To See From GLUU Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from GLUU. However, it’s important to remember that price movement in the market tends to happen through a series of overreactions. While gains are justified, I’m not sure a gain near 30% will hold up. As a result, I’m expecting to see a slight correction in the market tomorrow, bringing GLUU down to a more sustainable rate. Nonetheless, the company has proven its ability to profit, and with the new partnership, I’m expecting for profits to grow further. All in all, things are looking great for Glu Mobile.
What Do You Think?
Where do you think GLUU is headed and why? Let us know your opinion in the comments below!