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What Is Glu Mobile Inc’s (NASDAQ:GLUU) Share Price Doing?

Glu Mobile Inc (NASDAQ:GLUU), a software company based in United States, led the NasdaqGS gainers with a relatively large price hike in the past couple of weeks. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Glu Mobile’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. View out our latest analysis for Glu Mobile

What’s the opportunity in Glu Mobile?

Glu Mobile appears to be overvalued by 29.63% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$6.36 on the market compared to my intrinsic value of $4.91. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Glu Mobile’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Glu Mobile look like?

NasdaqGS:GLUU Future Profit June 27th 18
NasdaqGS:GLUU Future Profit June 27th 18

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 69.93% over the next year, the near-term future seems bright for Glu Mobile. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in GLUU’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe GLUU should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

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Are you a potential investor? If you’ve been keeping tabs on GLUU for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for GLUU, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Glu Mobile. You can find everything you need to know about Glu Mobile in the latest infographic research report. If you are no longer interested in Glu Mobile, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.