Reportedly, Glu Mobile’s (GLUU) hit game Kim Kardashian: Hollywood is losing popularity, despite recent content addition and availability on Facebook (FB). This has negatively impacted Glu Mobile’s share price, which declined 10.14% in the last two days.
Bloomberg quoted an App Annie report that among iPhone downloads – Kim Kardashian: Hollywood – declined from #89 in the beginning of September to #162 by the end of the month. Currently, the game is #7 among top-grossing apps on the Apple platform. Per Bloomberg, the game broke into the top five after its release in June, this year.
On its debut, Kim Kardashian: Hollywood received overwhelming response from gamers, which helped Glu Mobile achieve new single-day records for overall revenues, downloads and daily active users (DAU).
Following the game’s success, Glu Mobile expanded its agreement with Kim Kardashian West for another three years, which is now scheduled to end on Jun 30, 2019.
Most recently, the company launched the game for all registered Facebook users. Approximately 375 million people play games on Facebook every month on desktops and mobiles. We believe that the launch of the game on Facebook will significantly increase user base going forward.
Glu Mobile continues to launch new games that are expected to drive its top-line growth. In September, the company launched Racing Rivals 2.0 on Facebook’s app center as well as on Apple’s app store and Google Play. The company expects to launch the next version of its popular franchise, Car Town on mobiles in 2015.
Glu Mobile also announced partnership with Skydance productions that will allow it to develop a free-to-play Terminator mobile game. The game is set to release in summer 2015 simultaneously with Terminator reboot movie.
We believe that Glu Mobile’s robust and innovative product pipeline is a major growth driver. Moreover, its aggressive acquisition policy is believed to fetch positive results in the near future. However, competition from the likes of Electronic Arts (EA) and Activision Blizzard (ATVI) remains a major headwind.
Currently, Glu Mobile has a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment