"Glu (GLUU -17%) raised FY14 revenue and EBITDA guidance materially to reflect the ongoing trajectory of [Kim Kardashian: Hollywood], but given low visibility, Glu is also factoring in an assumption that KKH will fall in the ranks over the next several months," writes Piper's Michael Olson, discussing the guidance that (though well above consensus) has sparked a massive selloff due to high pre-earnings expectations.
Olson is still reiterating an Overweight. In addition to being upbeat about the Kardashian game, he notes recent releases "have shown a pattern of version-over-version improvement in top grossing rankings, suggesting [Glu] has created a better 'formula' for improving monetization strategies."
Needham's Sean McGowan also likes how Glu is expanding its list of top-grossing titles, and calls the company well-positioned to beat guidance. Cowen's Doug Creutz calls the Cie Games acquisition (expected by Glu to contribute ~$16M in 2014 revenue) "an attractive addition to what is becoming a diverse portfolio of hit titles."
Shares still +52% from where they traded before the Kardashian game launched.