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Kim Kardashian Drives Glu Mobile Higher, Pops, and Slumps

By Ashraf Eassa – Jul 13, 2014 at 5:30AM

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The Dow Jones Industrial Average (^DJI) slumped 125 points for the week, slipping below the 17,000 mark. Some of the big movers for the week included Glu Mobile (GLUU), (AMZN -1.25%), and (OSTK 0.82%).

Glu Mobile gets a Kardashian boost
Shares of Glu Mobile have been on a tear since mid-June. It all began with the announcement that the company's Deer Hunter 2014 and Warrior 2 would be available on Google's Android TV platform.

However, what's been driving shares over the past few weeks has been the game Kim Kardashian: Hollywood. This is a free-to-play game available for both Apple's iOS and Google's Android, and has been very well received, achieving a rating of 5/5 on the app store (on nearly 50,000 ratings) and 4.3/5 on Google Play (on over 100,000 ratings).

Though it's still probably too early to tell, Cowen's Douglas Creutz believes that this game could be worth $200 million in annual revenue. If so, that would be a massive score for the company, which is on track to do about $160 million this year per analyst consensus.

Shares of Glu Mobile closed the week up 13.6%.

Strong results ahead for
According to ChannelAdvisor,'s same-store sales came in at 34.4% during June, outperforming the 28.1% growth it saw back in May. This number is fueling optimism that will beat current-quarter estimates, and as a result, shares closed out the week up 2.6% in a relatively weak market. reports its full Q2 2014 results on July 24. continues its descent
Shares of peaked around a year ago at about $35.50 per share, driven by short covering in the face of a number of very strong quarters for the discount online retailer. However, the story has turned sour over the past several months, as 2014 has shaped up to be a less than stellar year for the company.

Back in January, -- adjusting for a one-time tax benefit -- reported earnings per share of just $0.04, widely missing the consensus of $0.52 a share. Though sales grew, and though gross margins still saw about a 10-basis-point increase over the prior year's period, the company's operating expenses skyrocketed. Sales and marketing spend was up 52% to $31.2 million, and general and administrative costs, coupled with technology costs, grew to $39 million, up 19% year over year.

Following that report, the company yet again disappointed in its April earnings release, missing revenue consensus by $3.74 million and earnings per share estimates by $0.09. This trend has largely soured sentiment on the stock, and despite no further material news, shares of Overstock have lost 18.5% since that release.

The stock closed down 14.7% for the week, though it will be interesting to see whether the company can start impressing investors again at its upcoming earnings report, scheduled for July 28.

Ashraf Eassa has no position in any stocks mentioned. The Motley Fool recommends and owns shares of, Apple, and Google (A and C shares). We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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