Despite popping on Monday, December 11, Glu Mobile, Inc. (NASDAQ:GLUU) shares are down almost 7.02%, as of 12:42 p.m. EST on Tuesday, December 19, which puts the San Francisco-based company’s stock price at $3.78. Glu Mobile currently has a market capitalization of $556.36 million.
Last week, Darren Aftahi of Roth Capital reiterated his “buy” rating on Glu Mobile, and he also boosted his per-share price target to $5.25. For perspective, Aftahi used to have a per-share price target of $4.75. Last week, Glu Mobile’s stock was trading at $4.63 per share, and now, as of this writing, the GLUU stock is trading at $3.78.
Even though there was a meeting held last week by Roth Capital which discussed how AR trends could lead to better-than-expected books in 2018 for the game developer, the stock still had a difficult trading day yesterday, dropping more than 8.76%. Glu Mobile stock began the trading day on Monday at $4.40 but did not surpass that level. Though the stock dropped as low as $3.92 at one point during the day, it managed to climb back up the ladder and end the trading day at $4.06.
By the looks of it, it seems Tuesday, December 19, will not be any different. In fact, as of this writing, the stock dropped 7.39% in a ten-minute span.
While many hoped Glu Mobile’s new application. which features singer-songwriter Taylor Swift, will help to boost both the company’s stock and their reputation in the market, there are a few analysts and investors that believe this new app will just cause the stock to plummet even more. In early December, Glu Mobile released the Taylor Swift app which has been anticipated by consumers for quite some time. However, the stock’s success is directly tied to the success of the app.
One cannot deny that Glu Mobile has momentum but if the company shows any sign of wavering, which it has over the course of the past two days, it is very likely that shares will fall even harder in response. It is important that potential investors keep this in mind as we approach the coming quarters.
Featured Image: twitter
