China Mobile Games & Entertainment Group (CMGE)
Mobile gaming is really, really huge in China, much more so than anywhere else in the world. China Mobile Games & Entertainment Group (CMGE) is a company that makes those online games. Here again, we see a company with staggering growth, and a concomitant surge in the share price. On Monday, CMGE stock roared more than 8% higher in midday trading. That’s impressive considering the stock had just jumped 9% on Friday.
The big gains came one day after the company reported impressive Q1 revenue growth of 488.2%, up to $34.5 million. That metric easily bested expectations for a top line of $30.2 million. On the net income front, CMGE earned $5.6 million in Q1, a big move over the $3.46 million net loss in the same quarter last year. The positive reaction in the shares over the past two trading sessions represents a reversal of sorts for CMGE stock, as traders had driven the value of the shares down more than 40% in the three months prior.