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A Virtual Reality Taylor Swift Would Be A GLUU Dream Come True

Summary

Glu Mobile competes against more companies than just games.

Taylor Swift and other celebs sign "exclusive" and "multi-year" contracts with Glu Mobile.

Gross revenue shows growth with acquisitions and EV:Sales show a bargain of a buy.

More virtual reality games are to be expected from Glu Mobile as VR becomes adopted.

Glu Mobile (NASDAQ:GLUU) is a story of growth and speculation that only virtual reality/VR and Taylor Swift could surmise. In February they announced the partnership to make a Taylor Swift game. The speculation is that the company could one day be a preferred social media experience, combining the photo flip book, chat, gaming, etc. with one's favorite VR celebrity.

Taylor Swift with bf Calvin Harris at beach

(Instagram photo posted by bf Harris to fans)

Would a teenager continue to interact with Taylor Swift and Kendall Jenner on Instagram/Facebook (NASDAQ:FB) when they could enter a Glu Mobile virtual reality game that does all of the above? It appears this is the direction Glu Mobile is headed.

Glu Mobile is often misunderstood when compared to its conventional gaming sector, e.g., Zynga (NASDAQ:ZNGA). However, as Jeff Bezos of Amazon.com (NASDAQ:AMZN) put it: books, e-books and apps/games compete for the same dollar.

Due to Glu Mobile's continued celebrity contracts they are wading into the realms of social networking platforms. This poses the need to look at multiple companies when sizing up GLUU as a stock to buy, sell (short) or avoid.

Glu Mobile's Growth In Gross Revenue

Glu Mobile gross revenue chart by Travis Brown at Seeking Alpha

The revenue growth for Glu Mobile includes plateaus and strong bursts. It is here that one may assume celebrity games did well one year and not the next. On the contrary, the driving factor behind revenue growth has shown to be non-organic via acquisitions.

Successfully acquired hit games have been found to contribute a trickle down effect to their native creations.

In 2012, the revenue jump came with the acquisition of Deer Hunter, which up until then they were paying royalties to use the license.

In 2014, they received a burst due to the acquisition of Diner Dash (PlayFirst) and Racing Rivals (Cie Games). This coincided with their native release of Kim Kardashian: Hollywood.

It's misguided...


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