MIDAS SHARE TIPS UPDATE: Boku soars in price

MIDAS SHARE TIPS UPDATE: Our recommendation Boku soars in price

It is almost exactly a year since the UK first went into lockdown – an extraordinary period that has seen digital businesses come into their own. 

Boku exemplifies the breed. Its technology allows consumers to buy music, games, films and other goodies by adding the cost to their mobile phone bill or to special smartphone wallets that store cash digitally. Customers include Spotify, Netflix, Sony and Apple as well as mobile phone firms, such as EE and Vodafone. 

Lockdown boost: Midas recommended the shares as lockdown was starting, when the price was 59p

Midas recommended the shares as lockdown was starting, when the price was 59p. The stock has soared since then to £1.74. Boku has won new contracts, acquired a big rival in America and gamers, music-lovers, film buffs and consumers more broadly have bought more and more online. 

Overall, payments worth $6.9billion ($5billion) went through Boku’s system in 2020 and monthly users rose 48 per cent to nearly 30 million people. The company’s identity division fared less well. The business helps organisations to identify customers through their phone numbers. It continued to lose money last year. However, the subsidiary is now winning new business and prospects seem bright for 2021. 

Brokers are upbeat about Boku, forecasting strong growth this year and beyond.

Midas verdict: Boku shares have risen almost threefold over the past year so shareholders may choose to bank some profit before the end of this tax year. But they should not sell out completely. Boss Jon Prideaux is ambitious, sure-footed and, as a 1 per cent shareholder, he is motivated to succeed. 

Traded on: AIM Ticker: BOKU Contact: boku.com or IFC on 020 3934 6630 

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