What happened
Shares of Glu Mobile (GLUU +0.00%) climbed 24% in April, according to data from S&P Global Market Intelligence.
The video game company's stock saw strong double-digit gains last month as it bounced back from an 11.7% sell-off in March:
The novel coronavirus wrought havoc on stocks in March, but the broader market saw substantial recovery last month -- and some industries actually saw positive catalysts from the unprecedented conditions. Video game companies enjoyed heightened engagement in April as people sheltered at home in response to the COVID-19 pandemic, and Glu Mobile benefited from the trend.
Image source: Getty Images.
So what
The tailwinds from heightened engagement, and market momentum, prompted big gains for leading video game companies in April; stocks in the industry have generally performed well in 2020. While Glu didn't publish any updates about performance for its own titles last month, the mobile-gaming company's stock got a boost as the market priced in new momentum for interactive entertainment.
Now what
Glu stock has soared in May thanks to strong quarterly results and encouraging guidance. The company's shares are up roughly 29% this month:
Glu Mobile published its first-quarter earnings on May 7, delivering earnings that were in line with the consensus target, and sales that were significantly better than expected. The company posted a break-even quarter on revenue of $107.3 million (up 12% year over year), while the average analyst estimate had guided for sales of $96.75 million.
Glu is guiding for second-quarter bookings to be between $150 million and $155 million, and the company raised its full-year bookings target to a range between $490 million to $500 million -- up from its previous target for bookings between $423 million and $433 million.
