Glu Mobile’s Stock Falls Based On Reports Of Slow “Speed Racer” Sales

Glu Mobile (NSDQ: GLUU) shares dipped today after an analyst said the poor performing Speed Racer movie will likely affect the company’s revenues because it produced a car-racing mobile game based on the title, AP reports. In afternoon trading, the stock dropped about 30 cents or almost 6 percent, to trade at $4.78 a share. The stock has ranged between $3.75 and $14.75 in the past year. In a note to clients, Soleil Securities analyst Todd Rethemeier said he is “concerned that second-quarter numbers will be disappointing” because of low ticket sales for the “Speed Racer” film. “Unfortunately, the movie did not live up to expectations, bringing in only $42 million at the box office. Although the game is still entertaining to play (it is a simple race car driving game), we don’t think that many people were excited to download a game based on a movie that they didn’t see,” he said. Rethemeier, who has an $11 price target for the stock, believes the company will do well in the second half of the year based on upcoming titles such as The Dark Knight, based on the upcoming Batman movie, and “Get Cookin,” a cooking game.

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