Glu Mobile Inc. (GLUU) Stock Plunges as Company’s Katy Perry Pop Game Performs Below Expectations

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Glu Mobile Inc. (NASDAQ:GLUU) saw its stock go up last week after the release of their latest celebrity-centered mobile game, ““Katy Perry Pop”. Many iPhone users were looking forward to this release, especially those who helped make Glu Mobile Inc.’s (NASDAQ:GLUU) Kim Kardashian game such a hit.

Investors apparently were not all that thrilled with the ratings that the game has received thus far, or perhaps the overall download numbers that it has seen, as shares are trading down significantly this morning. We’ve seen this before with game developers trying to capitalize on a new games by hoping it would be as successful as the first. Usually this is not the case. Many reviews are saying that this latest release is very similar to the previous release of the Kim Kardashian game.

The stock is down 13.56% or $0.4 following the news, hitting $2.55 per share. Approximately 1.37M shares traded hands. GLUU shares have declined 55.24% since May 18, 2015 and are currently downtrending. It has underperformed the S&P500 by 52.97%.

From a total of 7 analysts covering Glu Mobile (NASDAQ:GLUU) stock, 3 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 43% of the ratings are positive. The highest target price is $8 while the lowest target price is $3.30. The mean of all analyst targets is $5.06 which is 98.43% above today’s ($2.55) stock price. Glu Mobile was the topic of 11 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Wedbush initiated shares on December 8 with a “Neutral” rating. TH Capital initiated GLUU stock in a recent report from November 13 with a “Buy” rating. Finally, Benchmark downgraded the stock to a “Hold” rating in a report they issued on a November 9.

The institutional sentiment decreased to 0.84 in Q2 2015. It’s down 1.02, from 1.86 in 2015Q2. The ratio turned negative, as 28 funds sold all their Glu Mobile Inc. shares they owned while 36 reduced their positions. 14 funds bought stakes while 40 increased their total positions. Institutions now own 74.22 million shares which is 20.00% more than the previous share count of 61.85 million in 2015Q2.

Archon Capital Management Llc holds 4.27% of its total portfolio in Glu Mobile Inc., equating to 1.11 million shares. 12 West Capital Management Lp owns 3.74 million shares representing 2.39% of their total US portfolio. Moreover, Harvest Capital Strategies Llc has 2.11% of their total portfolio invested in the company, equating to 2.70 million shares. The Pennsylvania-based Millrace Asset Group Inc. has a total of 1.92% of their portfolio invested in the stock. Park West Asset Management Llc, a California-based fund reported 2.78 million shares owned.

Glu Mobile Inc. develops, publishes and markets a portfolio of games. The company has a market cap of $366.04 million. The Firm offers games to a cross section of users of smartphones and tablet devices who download and make purchases within its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store and Amazon Appstore, among others. It currently has negative earnings. The Firm creates games based on its own brands, including Blood & Glory, Contract Killer, Deer Hunter, Diner Dash, Eternity Warriors, Frontline Commando, Gun Bros and Heroes of Destiny.

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