Glu Mobile is a publicly traded company that makes games. The company make applications for mobile devices. The company is traded on the NASDAQ under the symbol Gluu. In this article I will review this stock and give my opinion on if it makes a good investment.
Glu is a technology company that is currently losing money, but it is in a position to soon make money. The stock is very very risky with a beta of 2.42. The company has a market cap of just under 400 million dollars, which makes this a very risky stock to invest in. In the technology world, there have been many company's that have gone bankrupt. Glu makes apps(mostly games) for the android and apple market, which has experienced a boom in users. Glu is on the cutting edge of the technology world and is right in the middle of the fast paced mobile market. With millions of people buying Iphones and smartphones, Glu is in one of the best positions possible. They are ready to capitalize on the growing mobile market, and already have a vested interest in it. With great apps like Big Time Gangster and Mutant Roadkill, Glu is ready to make money. Most of the apps Glu makes are free, and the company makes most of it's revenue from advertising and selling perks in it's games. Using social media, Glu has recently been able to better market itself to it's costumers. With revenues of about 60 million dollars, Glu spends most of it's money developing new apps. Glu currently has no debt, they paid it all of last year, which shows how the company is putting itself in a great position. In 2008 Glu lost roughly 1.88 dollars a share, in 2011 it lost only 0.19 per share. This is proof that Glu is rapidly changing and it is my hope that by 2013 they will become a profitable company with revenues reaching over 100 million dollars.
As an avid user of Glu products I can say with confidence that they make an outstanding product of superior quality. On the android market, they have some of the best apps, usually hitting over 1,000,000 downloads. As more people get devices and use the Google/Apple operating systems, Glu will receive more revenue. Unlike other app developers, they have found a way to monetize their products and in the future, they will find better ways to generate revenue. This company already has great apps, that people would pay money to get, and as their reputation grows, they will easily be able to get people to buy their apps.
Although the company is very risky, I recommend investing. This speculative stock could make investors a lot of money in the near future. If you believe like many people that the mobile application industry is still growing and will continue to grow, than invest in Glu. With a share price of only about 5 dollars, I see this company growing at a faster rate than Google or Apple. Now is the time to buy this stock at a great price.