Why MeetMe (MEET) Is Popping Today

NEW YORK (TheStreet) -- MeetMe (MEET) is trading higher on Friday after posting a better-than-expected fourth quarter before the bell.

By market open, shares had added 7.7% to $3.93.

The social network recorded break-even earnings in the three months to December, while analysts surveyed by Thomson Reuters had forecast a net loss of 2 cents a share.

Revenue of $13.02 million was slightly higher than consensus of $13 million, and 12.1% higher than the year-ago quarter.

Mobile revenue spiked 128% year over year to a record $5.1 million, driven by a significant increase in mobile advertising. Mobile income represented nearly 40% of total fourth-quarter revenue, the highest portion in the company's history.

"Our primary goal in 2014 is to drive significantly more mobile daily active users. The team is executing against an ambitious and exciting product pipeline aimed at increasing both viral spread and engagement among our users," said CEO Geoff Cook in a statement.

"Over the years, we have grown our audience from zero to over one million daily users primarily on the basis of our repeated success in creating new engaging products and then continually improving them," he added.

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TheStreet Ratings team rates MEETME INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate MEETME INC (MEET) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."

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