What happened
Shares of Glu Mobile Inc. (GLUU +0.00%) fell more than 12% on Monday after ROTH Capital analyst Darren Aftahi downgraded the free-to-play mobile game specialist to neutral from buy. He also reduced his per-share price target on Glu Mobile by a quarter to $8, marking a more modest premium from Friday's closing price of $7.20.
Image source: Getty Images.
So what
To justify his relative bearishness, Aftahi argued there are few catalysts to drive the stock even higher in the near term.
For perspective, Glu Mobile shares had soared 98% year to date leading up to today's session, most recently helped by a post-earnings surge starting in early August following the company's strong second-quarter 2018 report -- a performance management credited to its focus on monetizing existing mobile titles like Design Home, Tap Sports, Deer Hunter, and Cooking Dash.
Now what
To be fair, CEO Nick Earl teased last quarter that the company's pipeline of new games should leave it nicely positioned for continued financial outperformance going into 2019. But given the stock's meteoric rise so far this year, it's hard to blame some on Wall Street for taking a step back today.
