Glu Mobile Inc. (NASDAQ:GLUU) stock decline is troubling. The firm made two major acquisitions and commenced introducing decent games, yet the equity is performing poorly. The mobile game industry is extremely fickle. Game demand, be it stated as in-app purchases, daily active users, or free downloads, monitors a repeatable cycle. It is known fact that game makers are street’s favorites when their releases are a success and disappoint at other times.
Analysts projects it to grow its trailing EPS progression rate next year. They anticipate a 71% EPS growth next year, against a 30.7% jump in the previous five years. The firm’s small size might describe the equity’s underperformance. For now, short float stands at 14.6% as bears play downloads for celeb game releases decline. The charts even indicate downside in the coming period, after the equity failed to break over $2.40 on two instances.
Glu Mobile fourth quarter may crush bears. The firm will gain from the progress of Design Homes, even if there is drop in in-app purchase growth. In a couple of weeks, the firm launched special holiday ornaments and decorations to match holiday-themed missions and contests. It also reduces costs of diamond elements, which is the game currency required to buy furniture.
The media association with HGTV (SNI) offers Home Design introduction to the television channel, a move that helps all associates. HGTV obtains designs from the players, whereas Glu gets audiences aware of the game.
By contributing in featured HGTV tasks, customers may get the prospect to have their creations selected by editors for display on the site. A decline in interest in gaming equities may highlight Glu’s recent fall on the market.
The video game sales decline may demonstrate a seasonal occurrence. PC players hold out on purchasing EA or Activision games, in advance of the Steam sale, which commenced on December 22, 2016. Demand was so robust that the site collided.