2 Top Video Game Stocks to Buy Right Now The Motley Fool
The first video game made was an interactive, simple tennis game, similar to the classic 1970s video game Pong, with the objective of keeping a virtual ball bouncing between two competing targets. These are the video game stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at. The pioneering game publisher owns popular licensed franchises, including Madden NFL and FIFA, in addition to a stable of high-profile original assets, including The Sims, Apex Legends, and Battlefield. Electronic Arts’ June 2021 acquisition of Glu Mobile signals that the company is now aggressively expanding into mobile games.
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- The segment recorded 44% year-over-year growth to $2.4 billion, and it could keep getting better as PC hardware sales increase.
- These are the video game stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.
- Video games are often produced by major tech corporations that issue stock, but many video games are also produced by independent development teams and released to online PC gaming marketplaces like Steam or GOG.com.
- A video game is an interactive game that you can play on a console, PC, mobile phone or using a virtual reality headset.
To give you two ideas, here’s why you might want to consider buying shares of Take-Two Interactive (TTWO 2.29%) and Ubisoft Entertainment (UBSFF -6.28%) (UBSFY -1.91%). Accessories are essential for enhancing the gaming experience, including controllers, headsets, video game company stocks and specialized gaming furniture. There is a big void in the box office, and Nintendo is one of the few companies that can fill it. The success of the Super Mario Bros Movie is a testament to how much of an impact movies can have on Nintendo’s bottom line.
Activision Blizzard
Online game modes lead users to develop social networks, thus encouraging player loyalty. DLC can either refresh the multiplayer experience by introducing new maps and levels or extend single-player engagement with new storylines. Take-Two introduced a separate multiplayer mode, GTA Online, with the launch of GTA V in 2013.
Alternative Ways To Invest in Gaming Stocks
Take-Two has capitalized on the shift within the industry toward a bifurcated market consisting of major blockbuster titles on one side and smaller independent games on the other. The firm generally focuses on the higher end, using its capital to fund the higher-budget blockbusters and its marketing advantage over independents to support its titles. Over the past 10 years, the firm has established new franchises such as Borderlands while reinvigorating older ones like Xcom. We expect the company to continue to invest in new intellectual property and to fund sequels and the expansion of its core franchises onto mobile platforms. While games will remain NetEase’s core cash flow driver, we think the firm’s investments in other areas (music streaming, online education, e-commerce) also offer long-term potential. Cloud Village, the group’s music streaming arm, had over 200 million monthly active users in 2023 and remained the second-largest music streaming platform in China.
The easiest way to buy gaming stocks is to open a brokerage account from which to place your orders. With an online brokerage such as Fidelity, you can place your own orders or, for a fee, let the broker place orders for you. Alternatively, use an investment app like Robinhood or Webull to place your own orders.
Electronic Arts (EA, $131.34) is a global leader in video game development with a deep catalog of popular titles including the franchises of FIFA, Star Wars, The Simpsons and The Sims, among others. Even the best video game stocks are starting to cool off after a white-hot 2020. That spells opportunity for investors wanting to get in on a promising longer-term trend.
The company generates the majority of its revenue from sales of virtual items in live streaming platforms as well as other services, which substantially consist of advertising and online game-related services. These are the video game stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders through dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated. Electronic Arts has long been a popular video game company, but lately it’s been generating increasing revenue from in-game purchases. Founded in 1982, it has had to evolve from a pioneering content generator to a digital distributor that also derives recurring subscription revenue. Some of its top games include Battlefield, The Sims, Apex Legends and licensed products with Madden NFL, FIFA and Star Wars.
Some of the firm’s notable games include Resident Evil, Street Fighter, Monster Hunter, and Mega Man. France-based Ubisoft Entertainment might be the most undervalued https://investmentsanalysis.info/ video game stock right now. Ubisoft has struggled to keep its bottom line above breakeven, despite maintaining stable annual revenue above $2 billion.
The evolution of the video game industry into a cultural and business phenomenon offers compelling growth opportunities for investors. The company also owns other popular intellectual properties, such as the NBA 2K Series, Borderlands, WWE2K, and others. The company is present on all gaming platforms, with its studios churning out games for the console, PC, and mobile markets. This combination of a wide range of titles and presence across different types of gaming hardware has given rise to a sticky customer base. Take-Two’s diverse product portfolio explains how the company delivered better-than-expected results last quarter despite delaying the launch of a few important games.
Although Nintendo is likely to recover, as it has a stockpile of money to offset losses, many other companies may face issues. The future of video game stocks looks promising with continuous technological advancements and increasing gamer engagement worldwide. Beyond traditional sales, video game companies are capitalizing on the trend of gamification, applying gaming mechanics to non-gaming contexts to increase engagement and user interaction. This transformative approach is driving the long-term growth prospects in the sector.
That part of Microsoft’s business grew by 62% YOY in the third quarter of fiscal 2024, largely due to the recent acquisition of Activision Blizzard. Some gaming stocks have been leveling up portfolios for several years while outperforming the S&P 500. Gaming stocks can also navigate recessions better than most stocks, as gaming presents a way for people to temporarily escape their financial hardships and other obstacles.
The Nintendo Corporation is a Japanese consumer electronics corporation and video game development company. Nintendo has created some of the best-selling games in video gaming history, including the Super Mario Brothers and Legend of Zelda franchises. It is principally engaged in operating its own live-streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming.
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