Why Glu Mobile (GLUU) Stock Is Tanking In Pre-Market Trading Today

NEW YORK (TheStreet) -- Glu Mobile (GLUU) shares are down -9.2% to $6.26 in pre-market trading after being downgraded to "hold" from "buy" by analysts at Benchmark, who lowered their price target to $6.74 from $7.93 on Tuesday.

The downgrade comes as analysst see the momentum for the mobile gaming company's smash hit Kim Kardashian: Hollywood slowing down in the second half of the year as well as dilution from the company's recent acquisition of Cie Games for $100 million.

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

"We rate GLU MOBILE INC (GLUU) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its disappointing return on equity."

GLUU Chart GLUUGLUU Chart GLUU data by YCharts
data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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