Glu Mobile Shares Becomes Undone

Loading...
Loading...

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Glu Mobile Inc. GLUU shares were trading lower by $0.90 (15 percent) at $4.78 in Wednesday's session. Despite posting a Q2 beat for EPS ($0.01 vs. estimates of a $0.04 loss) along with better sales ($57.5 million vs. $51.5 million), the Street is focusing on its lower guidance for Q3 and the remainder of the year.

The company forecasts Q3 sales at $58-$60 million vs. $73.8 million estimates, and FY EPS and sales to substantially lower as well.

The poor guidance instigated a lower open ($5.15 vs. Tuesday's close of $5.67). After a nickel pop, the decline continued. So far, it reached $4.59 and has rebounded slightly. That low corresponds with a pair of lows from March 13 ($4.57) and March 16 ($4.61).

Today's route is taking place on heavier than average volume. So far, 6.7 million shares have changed hands compared to its 20-day average of 2.05 million with over four hours remaining in the day.

Posted In: TechnicalsIntraday UpdateMoversTrading IdeasPremarket outlook
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...