Glu Mobile (GLUU) Stock Gaining Today on Game Partnership With Jenners

Glu Mobile (GLUU) stock is up this morning after the company partnered with Kendall and Kylie Jenner on the development of a new mobile game.
By Kurumi Fukushima ,

NEW YORK (TheStreet) -- Shares of Glu Mobile (GLUU) - Get Report are gaining, up 3.37% to $4.98 in early market trading Tuesday, after the company announced its partnership with Kendall and Kylie Jenner on the development of a new mobile game.

Glu Mobile, the maker of "Kim Kardashian: Hollywood," decided to feature the voices, likenesses, and creative influences of Kim's younger half-sisters, Kendall and Kylie.

The company said it expects to launch the new game in late 2015 on both iOS and Android devices. 

San Francisco, CA-based Glu develops and publishes a portfolio of action or adventure and casual games for mobile use.

The company's products are designed for the users of smartphones and tablet devices who download and purchase its games through direct-to-consumer digital storefronts.

Glul primarily creates games based on its own brands, including "Big Time Gangsta", "Blood & Glory", "Contract Killer", "Diner Dash", "Heroes of Destiny", and "Racing Rivals".

Separately, TheStreet Ratings team rates GLU MOBILE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate GLU MOBILE INC (GLUU) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GLUU's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 109.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GLUU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for GLU MOBILE INC is rather high; currently it is at 60.26%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, GLUU's net profit margin of 1.89% is significantly lower than the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Software industry and the overall market, GLU MOBILE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • GLUU has underperformed the S&P 500 Index, declining 13.64% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • You can view the full analysis from the report here: GLUU Ratings Report
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