The video game industry has a market capitalization of $1 trillion. That sets off to a good start, isn’t it? This industry is not limited to the PlayStation and other games, or Xbox, and the rivalry that refreshes every time Microsoft and Sony release their latest gaming console. The industry has entered mobile markets, live streaming via platforms like Twitch, and the latest fad being online e-sports.
Sony Interactive Entertainment, the company behind the Playstation 5, is the world’s largest video game company with an estimated net worth of $45 billion. The gaming division of Japanese multinational conglomerate Sony Corporation, Sony has dominated the gaming market with its premium consoles and software, capturing audiences worldwide. They are closely followed by other video game giants like Microsoft, Nintendo, and Electronic Arts (EA).
But these aren’t the only gaming companies that are taking the stock market by storm. There are many lesser-known game development and publishing companies that have a cult following. You would surely have heard of them if you are a gamer. Tell us the name of the gaming companies that we might have missed out, in the comment section below.
The pandemic has aggravated the number of gamers and the time they put into video games. Digital passes and in-game purchases have become a huge revenue source for gaming companies in the last few months. Sales revenue has increased manifold for these gaming companies that have introduced digital passes and other innovations to monetize the increased traffic from players. It is not too late to capitalize on the increased revenues that these companies are making, so we highly recommend adding some of these stocks in the next section to your portfolio.
So which are some of the gaming stocks you can buy today?
The gaming industry is popularised more now than ever, thanks to the limited mobility worldwide coupled with exciting new developments in technology and virtual reality. The introduction of nanotechnology in the semiconductor industry has boosted the capabilities that can be offered through gaming consoles. Here are the gaming stocks you can buy on NASDAQ and the NYSE. Most of them are corporations that produce games or hold licenses to developed games or produce graphics cards and other electronics to support the gaming industry.
- Microsoft Corporation – the creator of Xbox gaming consoles that hold licenses to many exclusive gaming titles on the Xbox consoles.
- Electronic Arts – the company behind the Star Wars gaming universe, FIFA, MADDEN, NFL, NBA and many other sporting titles.
- Nintendo – the Japanese company is the developer of the Nintendo GameBoy and T.V. gaming consoles and holds the rights for many games developed in the past decades.
- Activision Blizzard – the holding company resultant of a merger between two gaming giants. Activision and Blizzard have released many best-selling game titles in the last few years.
- Take-two Interactive – the company behind the best-selling L.A. Noire franchise and Civilization.
- Tencent – the multi-national and multi-faceted conglomerate behind the world-famous PUBG mobile franchise.
- Nvidia – most famous for its ground-breaking graphics cards.
- Glu Mobile
- MGM Resorts International
- Caesars Entertainment
Here Are Our Top 5 Gaming Stocks To Buy For Your Portfolio
We at UncutGlobe have compiled a list of 5 lucrative gaming stocks you should add to your arsenal of investments.
1. Activision Blizzard (NASDAQ: ATVI)
In July of 2008, Activision merged with Vivendi Games, the owner of the brand Blizzard Entertainment leading to the holding company renamed Activision Blizzard. This merger resulted in one the biggest in gaming history, with development teams of Activision and Blizzard coming together.
Activision Blizzard has undoubtedly benefited from the pandemic like many of its peers. The team behind the best-selling series Diablo and Call of Duty, Activision Blizzard stocks are currently at $90.08 as of May 6, 2021. It saw a 50% rise in its stock as gaming provided an escape to people in the pandemic. With the release of new games like the remake of Diablo 2, arguably the most successful installment of the Diablo franchise, and a new Call of Duty sequel, Activision Blizzard hopes to continue the trend after it took a small 11% knock on its stock price in the last few weeks. It is targeted to reach $115 by the end of this year. But for the long term, this stock is definitely a good bet.
2. Roblox Corporation (NYSE: RBLX)
Imagine Minecraft meets Grand Theft Auto (GTA) meets The Sims. This is the only ideal way to cover everything that Roblox brings to its massive online community. Roblox is an ultimate virtual universe that lets you create any world and be whoever you can imagine. There are no limitations. With millions of players worldwide, Roblox earns its revenue by selling game passes and in-game purchases called microtransactions.
Listed in March of 2021, Roblox had a stellar debut day, closing at a premium of over 50 percent from its listing price of $45. With a current market capitalization of $36.66 billion, Roblox Corporation is a game stock to look out for in the future as it is well positioned to capture the online gaming market.
3. SciPlay Corporation (NASDAQ: SCPL)
With a Profit-Earning (PE) ratio of 20.37 and an Earning Per Share (EPS) of $0.86, SciPlay Corporation shares are currently trading on NASDAQ at $17.52 as of May 6, 2021. SciPlay is owned by Scientific Games Corporation and develops and publishes mobile games and web platform titles. The Year-on-Year (YoY) revenue for the year ended Dec 31, 2020, grew by 25 percent to $582.2 million. With well-to-do titles such as Slots, Hot Shots, and Bingo Showdown, SciPlay is one stock that can give massive returns in the future.
4. Zynga Inc. (NASDAQ: ZNGA)
One of the more risky stocks on this list, Zynga Inc. is famous for its online mobile poker division- Zynga Poker. Zynga acquired Echtra Games earlier this year and is planning for massive expansions in the gaming industry. With cooperative gaming titles such as ‘Among Us’ being the rave these days, Zynga Inc. plans to utilize this field in its future titles.
With a market capitalization of $11.002 billion, Zynga is burdened by large loans and a negative EBITDA which can cast some doubt on its profitability in the near future. Still, definitely, one to look out for.
5. Playtika Holding Corporation (NASDAQ: PLTK)
Listed on Jan 15, 2021, Playtika Corp, was listed on NASDAQ at $27 per share with a market capitalization of $11.4 billion. Playtika’s higher profitability and earnings growth potential make it a better bet than similar space competitor Zynga Inc. Playtika develops mobile games in Europe, U.S.A, Middle-east and the Asia Pacific. It focuses majorly on casual and casino-based games. The Trailing Twelve Month (TTM) figures released show EBITDA at $506,400, showing consistent growth at every stage.
The Gamestop stock rally and where is it now
The Gamestop stock price action had taken the internet and global news by storm in the early months of 2021. Didn’t hear how? Check it out here.
The campaign by few Reddit users on the Gamestop stock had helped boost the stock to all-time highs of $325. However, the stock is currently back at a humble $160 level which is still 900 times its level pre-Reddit climb. The Gamestop stock rally garnered lots of criticism from Wall Street, saying that the stock’s rally is not warranted given its financials and standing. However, these gaming stocks mentioned above have solid financials and boast experienced management and a history of high-selling games. So, consider betting on these gaming corporations and game on!!