Glu Mobile Will Likely Try Another Katy Perry Game After Flop

Glu Mobile Inc. GLUU may have experienced some recent lackluster performances, but the mobile gaming company remains determined.

Recently, the company engaged in a "fireside chat" with Roth Capital Partners, during which the COO and CFO discussed the current mobile gaming situation.

Three Takeaways

Roth highlighted three main takeaway points from the meeting:

1. Frontline Commando:

"We learned that much of management's focus with the game in beta has been around load times and latency, and not so much monetization," Roth commented. "As such, with a few more months until ‘expected' launch […] we will be closely watching for improvement in monetization metrics."

2. Social Gaming Features:

The social aspect of gaming has been an "important opportunity for Glu." According to Roth, of significant note was "the integration of social features into its games, allowing for players to interact with other players and compete against one another."

3. Katy Perry:

The analysts confirmed that while Glu's initial Katy Perry game was a flop, the story may not be over. The development group who worked on the initial game "has sense been let go," and management suggested "it would take another crack at creating a game around the celebrity," Roth stated.

Valuation

Roth currently has a $5.25 price target on Glu, which is highly contingent upon rivals in the space and its reliance/dependence on celebrities. Furthermore, Roth listed the young target audience and fragmented market as additional risks.

Roth currently has a Buy rating on the stock, which was most recently seen trading up roughly 3 percent at $3.23.

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Glu Mobile Will Likely Try Another Katy Perry Game After Flop

Three Takeaways

Valuation