A New Feature From Meet Group Is Driving Shares 12% Higher Tuesday

MarketsMotley Fool

What happened?

Shares of Meet Group (NASDAQ: MEET), a collection of mobile social entertainment applications designed to foster human connection and interaction, including apps such as MeetMe and LOVOO, are up 12% as of 12:00 PM EST after the company updated investors on recent strategic progress.

Continue Reading Below

So what

A key component to Meet Group's update Tuesday was regarding the new "Battles" feature on the apps MeetMe and Skout. Essentially, Battles pairs two livestreamers and their respective audiences for a live competition that can be in anything from dancing to music to comedy. The Battles last only a few minutes, and the winner is determined by the number of diamonds received from viewer gifts.

"Our mission is to build the best place to meet new people," said Geoff Cook, CEO of Meet Group, in a press release. He added:

MEET data by YCharts

Now what

While this might not seem like a major deal to many investors, Battles could end up being an important driver for the company's revenue run rate, which exceeded $62 million annualized based on November, up from the $55 million mark during October. The past weekend checked in as the company's highest video revenue day in Meet Group's history.

Beyond Battles, management also has a number of features that it hopes will increase video monetization, including the "12 Days of Gifting" holiday campaign. As the company continues to improve its ability to monetize video through unique features and campaigns, it's clear investors are optimistic about financial results going forward.

10 stocks we like better than Meet GroupWhen 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 quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Meet Group 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 November 14, 2018

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.