Can Glu Mobile Hold Your Portfolio Together This Summer?

Glu Mobile GLUU is in one of the hottest technology sectors of recent days. With internet and mobile platform usage reaching new highs seemingly every month, Glu Mobile seems to have attracted a significant amount of investor interest. Recently, several articles have been published about the developments at Glu Mobile, and it would be worthwhile here to put those thoughts into the larger context of Glu's corporate and sector developments. The mobile phone market has certainly seen significant growth in recent months, especially with the advent of the Apple iPhone and the merger of T-Mobile and AT&T. This growth in the mobile phone market will only increase as more people use cloud computing to manage their data on the go. GLUU is in position to take advantage of this growth and the swap to cloud computing technology. Glu mobile has made itself a niche in this emerging market by creating a way for consumers to interact using social media and gaming. All of Glu's games, including Brain Genius, Super K.O Boxing, and the newly released Eternity Warriors, can be played on a variety of mobile operating platforms. Glu also announced recently that its Eternity Warriors App for iPad, iPhone and iPod touch is now available on the Apple App Store. "Eternity Warriors is an action game that offers the best in 3D freemium graphics and gameplay," said Daren Chencinski, Vice President of Production at Glu. "With the ability to battle alongside friends with Game Center, Eternity Warriors delivers true 3D social gaming." It is because of games like Eternity Warriors that Glu mobile has gained popularity among investors in the technology sector. The company's share hit its 52 week high this week at $6.10 per share. The company has also experienced steady growth over the past year. Glu was only trading at around $1.40 during July 2010, so its current trades around $5.80 making it a potential value stock. However, it's not all puppies and sunshine. Even though the company's steady growth over the past year makes it look like a good value stock, the company's financials make some investors skeptical. For example, company revenue has continued to decrease from $89,767,000 in 2008 to $64,345,000 in 2010. Glu mobile also has still not been able to break-even and net income from the last annual report came in at a negative $13,423,000. Still, it's operating in an interesting market and is certainly a stock worth checking out. More information about Glu Mobile's games can be found here and on Benzinga's website here.