The video game industry is poised to continue growing in 2021. Following high player engagement levels during the coronavirus pandemic, game companies now have a larger installed base of players to monetize with in-game updates. That’s one reason to consider putting some money to work in a gaming stock.
While investors can’t go wrong with any of the leading game companies, I believe Glu Mobile (NASDAQ: GLUU) offers the best combination of growth and value in the short term. Here’s why Glu Mobile should outperform the broader market in 2021.
Glu Mobile is one of the leading mobile game developers, with $512 million in revenue over the last four quarters. Revenue has more than doubled over the past five years, but growth accelerated meaningfully in 2020. It’s impressive that Glu Mobile drove 40% and 48% year-over-year revenue growth in Q2 and Q3, respectively, primarily from strong performance of existing games, along with the successful launch of Disney Sorcerer’s Arena.