The Dow Jones Industrial Average (^DJI +2.25%) slumped 125 points for the week, slipping below the 17,000 mark. Some of the big movers for the week included Glu Mobile (GLUU +0.00%), Amazon.com (AMZN +3.88%), and Overstock.com (OSTK +6.75%).
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 Amazon.com?
According to ChannelAdvisor, Amazon.com'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 Amazon.com will beat current-quarter estimates, and as a result, shares closed out the week up 2.6% in a relatively weak market.
Amazon.com reports its full Q2 2014 results on July 24.
Overstock.com continues its descent
Shares of Overstock.com 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, Overstock.com -- 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.
