NQ Mobile Inc., the Chinese software security company has recorded its biggest gain on record as it has announced of its new deal with America Movil SAB. NQ will be providing its products to the subscribers of the America Movil SAB. Incidentally, America Movil is a Mexican wireless carrier and is controlled by the renowned billionaire Carlos Slim.
The American depository receipts of the NQ mobile have increased by 17% and are currently at $8.07. The overall trading volume on NQ Mobile shares was 6 times higher if compared to the daily average of the last 3 months. NQ Mobile became the most traded Chinese company in the CH55BN today. On the other hand, the CH55BN went down by 1.3% and is currently at 92.86.
America Movil has 262 million subscribers in the entire Latin American region and this year, it will start to offer the products of NQ Mobile to the subscribers for better privacy, security and family protection, as far as the statement of NQ Mobile is concerned. NQ Mobile, incidentally, started a string of partnerships of late, as in last month; they signed deals with other companies such as US Cellular. They also declared partnership with a retailer of Verizon Communications Inc.
Andy Yeung, who works as an Analyst for Oppenheimer & Co., stated that NQ Mobile’s partnership with America Movil opens up a new source of revenue for the former. Incidentally, most of the sales of NQ Mobile come from phone manufacturers and application downloads at this point of time. Yeung added that the partnership is more important for NQ Mobile, if compared in terms of size.
By subscriber count, America Movil is the largest mobile operator in the Americas & according to some statistics, the owner of the same, Carlos Slim is the richest person in the world with a net worth of $71.2 billion. This new joint venture will start in Mexico and by end of 2013, will be spread to 17 countries of the region.
According to the Analyst of Piper Jaffray & Co., Mark Murphy, this partnership with America Movil is the biggest international deal that NQ Mobile has signed ever. Revenue forecast of NQ Mobile is also expected to be benefitted. According to Murphy, the shares of NQ Mobile are equivalent to buy at this point and the price target should be at $17.