- King Digital Entertainment’s lackluster IPO has put a damper on shares of Glu Mobile. However, KING and GLUU are very different companies.
- A $13.1 million increase in revenue enabled a $7.8 million increase in Q4 cash flow. Thus, analysts expect an 18.6% increase in 2015 revenue to produce a 600% EPS increase.
- KING’s IPO gives credence to a current valuation in excess of $6.00 for GLUU. Calculations show that a megahit like Candy Crush would likely send GLUU to the $50 level.