Jul 2, 2014, 11:53 am EDT
King Digital Entertainment (KING), the developer of Candy Crush Saga and other popular mobile games, has had a tough time since its IPO in late March. The offer price was $22.50, which was at the midpoint of the range of $21 to $24, and quickly fell to $15.21. But over the past week, King stock has had a nice run, trading up around $21.
Might this the start of a bull trend? Or should investors still be cautious?
Keep in mind that a key to the move in King stock has been positive notes from various Wall Street analysts. Just look at JP Morgan’s (JPM) Dough Anmuth. According to his analysis, King stock could get a nice boost from the continued strength in free cash flow generation, which he thinks will exceed $800 million this year. He even thinks the company may return some of this cash to shareholders either via dividend or share buybacks. Anmuth has a price target on King stock of $30 by the end of the year. Read
Jul 1, 2014, 11:13 am EDT
This week, Twitter (TWTR) agreed to purchase TapCommerce, a top player in the mobile ad space. While no price tag was disclosed, the buzz is that the deal came to about $100 million. The acquisition also comes on the heels of a big run for Twitter stock, which is up about 25% since late May.
First, let’s get some background on TapCommerce: Founded in 2012, the company saw lots of potential with mobile ad retargeting. Granted, this type of technology has been around for quite some time, but it has traditionally been focused on the desktop.
Example: Suppose you visit an ecommerce site and check out some products but do not make any purchases. Then you visit other sites and see ads pop up for that same ecommerce site. These generally have a higher conversion rate because you have already indicated some level of interest in the products. Read