Can Glu Mobile Stock Keep Going After Last Week's 12% Pop?
It was a good week for Glu Mobile (NASDAQ: GLUU) shareholders. The publisher of mobile games saw its shares move 11.7% higher after posting its latest quarter's results and boosting its full-year guidance. The encouraging report sent the shares to a fresh 52-week high, pushing the stock north of $3 for the first time since April of last year.
Revenue soared 42% to $68.7 million, fueled largely by the success of the Design Home app that it acquired as part of its $45.5 million deal for Crowdstar late last year. It's Glu Mobile's strongest top-line results in more than two years. After six straight quarters of year-over-year revenue declines Glu has now checked in with back-to-back quarters of growth.
Red ink continues to flow at Glu Mobile. The app developer is checking in with a deficit of $0.17 a share, its seventh consecutive quarterly net loss. The biggest culprit on that end of the income statement was sales and marketing costs nearly tripling over the past year. However, the hearty top-line surge on even stronger bookings growth and a more optimistic outlook was all that investors needed to bid the stock to its highest level in more than a year.
Source: Fool.com
