It is remarkable how NQ has evolved from a bread-and-butter Android security proposition (a product that is a near-commodity) into a fully-fledged mobile platform company with multiple fast-growing revenue streams. While we would have liked to see earnings coming in stronger, this is just one quarter, and the earnings disappointment is at least partly the result of one-off costs and circumstances, and reinforced by a bad market and lingering uncertainty over audits. Further, with the platform strategy just emerging, it is to be expected that revenue growth trumps earnings growth at this early stage. We think the punishment of the shares is exaggerated, for several reasons:

NQ Mobile Inc (ADR) (NQ) news: NQ Mobile Is Oversold – Seeking Alpha