10 Small Cap Stocks with Huge Upside Potential

6. DoubleDown Interactive Co., Ltd. (NASDAQ:DDI)

Upside Potential: 106%

Market Capitalization: $487.11 million

DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is a leading developer and publisher of digital games on mobile and web-based platforms. The company is widely recognized for delivering real Las Vegas-style entertainment to players worldwide through the creation of multi-format interactive experiences via an online social casino platform. Among the top games developed by the company are DoubleDown Fort, DoubleDown Classic, Ellen’s Road to Riches, and DoubleDown Casino, with the latter being its flagship game.

Though DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) has consistently witnessed a dip, analysts expect that it will steer its way back to growth. The company’s purchase of SuperNation is one of the reasons analysts believe in the stock’s huge upside potential. The testament to the success of the acquisition is management’s statement regarding leveraging the model of the acquisition in its future projects. While the quarterly revenues have surged from $6.5 million to $9.5 million in just a year, the company plans to grow its new iGaming business through enhanced marketing investment and collaboration with new players in the U.K. and Sweden industries.

Not only this, DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is working towards a more optimized operational process, particularly “live ops”, to scale business foundations. By securing new licenses, the company is just in the right position to leverage its core strengths across technology, game development, and intelligence service.

DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) has adopted three strategies to mitigate its risks: enhancing the entertainment value, increasing direct-to-consumer revenue, and achieving additional returns from the SuperNation acquisition. As long as the management is able to capitalize on these, we have a strong reason to view DDI as a bull case.