After Thursday’s market closing, Glu Mobile (NASDAQ: GLUU) reported earnings. While EPS was well below estimates, the company managed to beat revenue estimated by $0.37 million. Nonetheless, the company’s earnings of $51.3 million equated to a 20.4% decrease from the same quarter the previous year. Despite the declining revenue, the company still shows signs of life. The impact of the announcement that Glu would be working with Taylor Swift should remain clear in the minds of GLUU stockholders. The announcement back in early February sent the company’s stock up nearly $2 from $2.01 to $3.92. The stock is now below the previous $2.01 level and could be a good opportunity.
The launch of their Taylor Swift based game could be an enormous hit for the company. The game could launch sometime in early 2017, as long as everything goes smoothly. At this current price, investor could get a bargain and may be able to ride the Swift rollercoaster to good returns. Of course, the game will need to perform much better than Glu’s recent ventures with Katy Perry and Britney Spears. Glu needs a homerun. A game riddled with bugs cannot be tolerated. In other news, Glu has named Nick Earl as its new CEO, while Niccolo de Masi will become executive chairman.
Earl is no stranger to the videogame industry having previously worked with The 3DO Company, Eidos and Electronic Arts. De Masi is expected to begin focusing on bringing Glu to long-term profitability. Also, the company announced they had purchased controlling interest in Crowdstar, which is best known for creating the fashion oriented game Covet Fashion. The game has been very successful with a total download count exceeding 35 million.
Covet Fashion has an active user base with nearly 400,000 combined likes on Facebook and Twitter. Covet Fashion already follows the Glu Mobile business practice of making a profit through in app purchases. The app has a rating of 3.9 or higher across Amazon, Google Play and iTunes. Suffice to say, Crowdstar and Covert Fashion should be two more excellent tool in Glu’s arsenal. Nonetheless, most investors are eagerly awaiting the arrival of the company’s Taylor Swift game. Until then, GLUU may remain at bottom of the barrel prices. Many will consider scooping up a few to be a wise choice.