How will the 34.2% YoY revenue increase affect earnings guidance and valuation multiples?

The 34.2% YoY jump in six‑month revenue signals that Global Mofy (GMM) is likely to lift its FY‑2025 earnings guidance, as the top‑line surge is coming from both its virtual‑technology services and higher‑margin digital‑asset development lines. Assuming the cost structure remains stable—typical for a firm still in the R&D‑heavy growth phase—the incremental revenue should translate into a modest but meaningful improvement in operating income, prompting management to upgrade its 2025 EPS outlook (e.g., from a low‑single‑digit to a mid‑single‑digit growth range). The market will therefore price the stock on a higher forward‑earnings multiple, but the degree of expansion will be tempered by the “growth‑cost” trade‑off: investors will still apply a premium to the P/E to reward the AI‑centric growth trajectory, yet the premium will be compressed relative to the prior “growth‑at‑any‑cost” valuation.

From a valuation standpoint, the revised guidance will push the forward‑P/E from the current ~70× (reflecting the 2024‑25 outlook) down toward the 45‑55× band that peers in the generative‑AI and digital‑content space command when earnings are on a clearer trajectory. This contraction in the multiple is justified by the higher earnings base and by the market’s expectation that the company’s R&D spend will start to generate scalable cash‑flow returns. Technically, the stock is likely to break out of its recent consolidation range around the 30‑day moving average, with bullish momentum confirmed by a crossing above the 20‑day EMA and a breakout of the $12‑$13 resistance zone. Traders can look for a short‑to‑medium‑term upside move toward the $15‑$17 ceiling, while keeping a stop just below the breakout level to protect against a potential pull‑back if the guidance upgrade is muted or if broader AI‑sector sentiment softens.