Boston, MA 07\/10\/2014 (wallstreetpr) \u2013 Glu Mobile Inc. (NASDAQ:GLUU)<\/b>, publisher of mobile games mostly based on action and adventure storyline, is riding high on the hype of its newly released game known as Kim Kardashian: Hollywood.<\/p>\n
Although the stock is already up nearly 44 percent since the release of the game on June 25, it is not hard to see heightened investor concern.<\/p>\n
Stocks riding on the hype generated by popular products is a common phenomenon on Wall Street. The problem is that hype-based gains don’t last long, at least if the experience from other game publishers like Zynga Inc (NASDAQ:ZNGA) is anything to consider.<\/p>\n
Zynga\u2019s concept of social media games that launched on popular sites like Facebook Inc (NASDAQ:FB)<\/strong> earned it widespread traction on Wall Street. However, reliance on just a handful of popular games saw the stock fade away. Zynga (NASDAQ:ZNGA)<\/strong> is down more than 20 percent year-to-date. The company has even closed Facebook offering of some of its legacy titles.<\/p>\n Sustaining revenue growth<\/b><\/p>\n Given that investor concern about games companies is based on the ability of a company to keep developing captivating titles that can sustain revenue growth, Glu Mobile Inc. (NASDAQ:GLUU) must address that concern by bringing to the market popular titles in quick succession.<\/p>\n Kim Kardashian: Hollywood is already hitting on popular app stores such as Apple Inc\u2019s (NASDAQ:AAPL)<\/b> U.S. App Store where the game rose to be the second most-downloaded free-to-play game.<\/p>\n Revenue potential<\/b><\/p>\n According to Douglas Greutz, an analyst with Cowen & Company, Kim Kardashian: Hollywood has the potential of hitting $200 million in annual revenue. They have a Buy rating on the stock with a price target of $6 apiece.<\/p>\n Glu Mobile Inc. (NASDAQ:GLUU) went public in March 2007 where shares were offered at $11.50 apiece. The shares peaked in June the same year to $14.67. However, things have not been the same since then, and the stock currently trades in the range of $5.46, rising nearly 7.1 percent in the last session, the highest gain in nearly four months.<\/p>\n","protected":false},"excerpt":{"rendered":" Boston, MA 07\/10\/2014 (wallstreetpr) \u2013 Glu Mobile Inc. (NASDAQ:GLUU), publisher of mobile games mostly based on action and adventure storyline, is riding high on the […]<\/p>\n","protected":false},"author":32,"featured_media":27161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236,263],"tags":[1747,1956,813,1957,708,7636],"stock_ticker":[],"class_list":["post-27157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-technology","tag-facebook-inc-nasdaqfb","tag-glu-mobile-inc-nasdaqgluu","tag-nasdaqfb","tag-nasdaqgluu","tag-nasdaqznga","tag-zynga-nasdaqznga","entry"],"acf":[],"yoast_head":"\n