This Small-Cap Stock Could Win Big in 2020

With a forgettable 2019 now in the rearview mirror, Glu Mobile (NASDAQ: GLUU) investors will be hoping for a turnaround in the mobile gaming company's fortunes in 2020. Glu struggled last year after one of its games misfired, and investors didn't waste any time hitting the panic button.

Glu's failure might seem surprising given that it was coming off a terrific 2018. But investing in small-cap stocks is fraught with risk, as they tend to be 25% more volatile than large-cap stocks over a business cycle. So 2019 showed us exactly why investors need to be on their toes: Any misstep by a small-cap player can cost investors dearly thanks to the higher degree of risk attached.

But the upside to investing in small-cap stocks -- those with market caps between $300 million and $2 billion -- is that they can deliver above-average returns. And there are reasons to believe that Glu Mobile could do the same this year. Let's see why.

Source Fool.com