Glu Mobile Inc. (NASDAQ: GLUU)
Glu Mobile is having a strong day in the market today, following up on gains experienced on the stock yesterday. The reason for the upward movement is relatively simple. The company recently announced the launch of a new game. Today, we’ll talk about the new game, how the market reacted to the news, and what we can expect to see from GLUU moving forward.
GLUU Gains On Gordon Ramsay Game
As mentioned above, Glu Mobile is having yet another strong day in the market today. The gains are the result of an announcement the company made yesterday. According to the announcement, the company has launched a new game called Gordon Ramsay DASH. The game is now available on Google Play and on the App Store.
Gordon Ramsay DASH features the voice, likeness of, and exclusive video messages from Award-Winning Chef Gordon Ramsay. The goal of the game is to allow players a chance to achieve culinary successes of their own. The game features advanced character customization. Through the customization, GLUU is allowing players to create their own characters with their own chef attire and equipment. Once the characters are created, players will enter the chef arena to compete head-to-head.
Following the announcement of the game launch, both Niccolo de Masi, CEO and Chairman at GLUU, and Gordon Ramsay offered compelling comments. Here’s what they had to say:
“Gordon Ramsay is a remarkably accomplished figure in both the culinary world and the entertainment industry… Having opened critically-acclaimed restaurants worldwide, while starring in several highly-rated TV programs, we couldn’t be more excited that our partnership adds mobile gaming to his impressive business portfolio.
Gordon Ramsay DASH offers players the unique, high-stakes experience of building a restaurant empire while being mentored by Chef Gordon Ramsay… I am confident that Gordon’s global and highly engaged fan base, coupled with Glu’s leadership in the time-management genre, is a recipe for success!” – Niccolo De Masi
“Mobile gaming is a really exciting space to be in right now and something I’ve wanted to be involved with since I saw my kids playing them on their smartphones. It was very important to me that the game accurately portray the challenges, intensity, accomplishments, and excitement that comes along with rising up the ranks in the restaurant business… The game looks briliant and I hope everyone has as much fun playing it as we did making it!”
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the stock associated with the company. Adversely, negative news will lead to declines. In this particular case, the news was overwhelmingly positive. As a result, we saw strong gains in the value of the stock yesterday. Today, GLUU continues heading upward. Currently (12:00), the stock is trading at $2.22 per share after a gain of $0.02 per share, or 1.14%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from GLUU. In the short run, we may see more gains as investor excitement builds surrounding the new game. However, I have a some concerns. The reality is that Glu Mobile has had a rough time recently, as more and more games continue to flop, for lack of a better word. While I do think that the company has something special with Gordon Ramsay DASH, this could be another move that leads to disappointment. So, if you plan on getting involved in the stock now, make sure to invest with caution. If Gordon Ramsay DASH ends with the same results as other recent games, more declines are ahead.
What Do You Think?
Where do you think GLUU is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
[Image Courtesy of Wikipedia]