Glu Mobile Falls as Kardashian Game Drops in RankingsSonali Basak
Glu Mobile Inc., the video-game publisher that surged after its Kim Kardashian: Hollywood became a hit, fell on concern that the title may be losing some of its appeal.
Glu, based in San Francisco, dropped 7.3 percent, the most in more than two months, after the Kardashian game fell in online rankings. In the past month, the title fell to No. 162 in the rankings among iPhone downloads from about No. 89, according to researcher App Annie. On the Apple format, it stands at No. 7 today among top-grossing titles, which counts spending such as in-game sales. It broke into the top five after its release in June.
“If the download rank has fallen significantly, people may be assuming that revenues for the game have at least hit a trough if not peaked,” said Lewis Ward, research director of gaming at International Data Corporation. He said the game this year has been a success for Glu, and revenue per user is more important than the number of people playing.
A Glu official didn’t immediately respond to a request for comment. The website TheStreetSweeper reported on declining downloads earlier today, citing App Annie.
The game takes users on a virtual tour through Hollywood with advice from the celebrity on how to reach the A-list.
Glu declined 38 cents to $4.76 at the close in New York, narrowing the year-to-date gain to 23 percent.
The company said on Oct. 2 that it added new content for the game and made it available to Facebook users. Mike Hickey, an analyst with Benchmark Co., said he is less concerned about the volume of downloads than the results of future products.
“The investor perception is mobile games are one-hit wonders,” said Hickey, who rates the stock neutral. “The concern would be for growth in 2015.”