Is Glu Mobile Inc. (NASDAQ:GLUU) a Solid Play Right Now?

Is Glu Mobile Inc. (NASDAQ:GLUU) a Solid Play Right Now?


The coronavirus pandemic has unleashed absolute turmoil in the capital markets, but that does’nt mean that there aren’t opportunities to be had. Due to the lockdowns, hundreds of thousands of people are cooped up in their homes, and due to that situation, mobile gaming company Glu Mobile Inc. (NASDAQ:GLUU) has managed to avoid a massive decline.

What to Expect?

It has managed to stay resilient despite the current situation and has, in fact, shown some growth when compared to the wider market. It is a small-cap stock, and it could be worthwhile for investors to take a closer look at Glu Mobile during this market selloff.

The lockdowns all over the world are going to have a positive effect on gaming companies since more and more people are going to spend time at home. The lockdown in China had resulted in a significant upswing in gaming downloads, and yesterday, India went into lockdown for 21 days.

Game publishers in India have stated that they experienced a three times surge in gaming traffic in recent days. Hence, Glu Mobile could well prove to be a decent bet in these times. The company had projected that there would be bookings growth in 2020 and also launched a new version of its popular game Tap Sports Baseball.

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The company is aiming to take the title to as many as 100 countries, and the current situation could definitely aid in that expansion. GLU is also set to launch the game Disney Sorcerers Arena, and on top of that, two other games are slated to launch this year. It is also important to note that its marketing and acquisition expenses are expected to drop from $118 million last year to $110 million in 2020.

That should also boost its margins considerably. On the other hand, GLU boasts of a cash position of $127 million and a debt of only $14 million. Hence, the GLU Mobile stock could turn out to be a decent pick in current times. Sign-up for continuing coverage on shares of $GLUU stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $GLUU, either long or short, and we have not been compensated for this article.

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