Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why MeetMe, Inc. Stock Jumped 21.9% in March

What happened

Shares of MeetMe Inc.  (NASDAQ: MEET  )  jumped 21.9% in the month of March, according to data provided by S&P Global Market Intelligence, after the budding social media technologist announced strong fourth-quarter 2016 results.

So what

Shares climbed 14% in the first trading day following MeetMe's quarterly release. In it, MeetMe confirmed revenue had increased 47%, to $29.2 million, while adjusted net income rose 56%, to $12.4 million, or $0.19 per share. By comparison, Wall Street was modeling lower revenue and earnings of $28.8 million and $0.16 per share, respectively.

Teenagers using cell phones


Also within that report, MeetMe revealed it has executed a $60 million cash acquisition of fellow social media and mobile tech company If(we), Inc.

"The addition of if(we)'s Tagged and hi5 brands into our portfolio is expected to increase our monthly active users to more than 10 million," added MeetMe CEO Geoff Cook, "giving us even greater scale for monetization and increased profits."

The deal is expected to be accretive to MeetMe's earnings and free cash flow within the first year after the transaction closes later this quarter. 

Now what

As it stands, MeetMe stock has nearly doubled over the past year, including a more than 12% climb so far in 2017 thanks to its strong showing last month. But shares still trade at just 8.2 times this year's expected earnings. And if MeetMe's latest acquisition indeed provides a welcome push toward greater profitability, I think the stock could have plenty of room to climb from here.

10 stocks we like better than MeetMe
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and MeetMe wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of April 3, 2017

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 4012816, ~/Articles/ArticleHandler.aspx, 4/29/2017 1:29:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
Change down DOW 20940.5 -40.8 -0.2%
Change down S&P 500 2384.2 -4.6 -0.2%
Change down NASD 6047.6 -1.3 0.0%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/28/2017 4:00 PM
MEET $5.96 Down -0.11 -1.81%
Meet Group CAPS Rating: *

Article registration testing

Revisit this page

Clear article's cache and revisit this page

Or, visit the current page, forcing Test ID to article:interrupt:106919 and

Tookie Value = 67638715729756225199581018712349