What happened
Continue Reading Below
Shares of Tokyo-based social-media service LINE Corp. (NYSE: LN) soared on Wednesday, rising as high as 16.3% above Tuesday’s closing prices before backing down to a 12.5% gain at the closing bell. The company reported third-quarter results in the early morning, showing solid revenue growth.
So what
In the third quarter, LINE’s top-line sales increased 18% year over year to land near $374 million. Earnings per diluted share and American depositary receipt stopped at $0.07, down from $0.11 in the year-ago period. Thanks to a strong posting in the second quarter, LINE’s year-to-date earnings more than doubled year over year.
Now what
In a prepared statement, LINE’s management said there’s an end in sight to economic and regulatory pressures in key markets such as Taiwan, Japan, and Indonesia. That’s good news for LINE, because optimistic consumers buy more smartphones and that’s where the company’s messaging apps collect their revenues. LINE is exploring new revenue streams these days, including a mobile-game development operation and a small indoor theme park in Taiwan.
Continue Reading Below
ADVERTISEMENT
LINE shares have performed a strong bounce from February’s trough. In turn, that was a correction from an overheated IPO in the summer of 2016. I don’t know where this stock is going next, but I have a good idea of who LINE’s management wants to be when the company grows up.
10 stocks we like better than LINE Corporation
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 LINE Corporation 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 October 9, 2017
Anders Bylund 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.
