MEET: Trader Expects More Gains

MeetMe Inc. (MEET) reported fourth-quarter profit of $9.9 million today. On a per share basis, the company said it had net income of 15 cents. Earnings, adjusted for one-time gains and costs, were 19 cents per share. The company also posted revenue of $29.2 million in the period.

As a result, MEET shares climbed 5.41% today. One option trader expects more gains from this name in the weeks to come. The trader purchased over 2000 March 5 calls in one print at 07:52am for $0.3 per contract (0.25 – 0.3). The volume at March 5 strike was higher than the open interest, which indicates that this was a new position.

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Several factors contributed to stellar company’s performance. The company was able to bring two of the largest mobile apps for meeting and chatting with new people, Skout and MeetMe, into the same portfolio, increasing the scale to more than eight million monthly active users. As a result, the company registered a record mobile revenue for the year, which increased 56% year over year and was driven by growth in the mobile engagement of the apps’ users, as well as by the continued strength in the mobile advertising industry.

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