Video Gaming Market an Interesting Opportunity for Investors

May 15, 2018
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Video gaming as an industry is worth $100 billion in revenue every year. Some of the world’s most profitable companies, including Microsoft and Nintendo, are heavily invested in gaming and the future of the industry.

Private investors, including people just like you, have also seen the value in video game investment in the last decade. Today, video game and technology related stocks are some of the most traded on the world stock markets. If you are like many investors and see a positive future in gaming, then it might be time to start looking at some of the stocks that are available.

Turtle Beach Corp. – NASDAQ: HEAR

An investment in Turtle Beach could come with some risk if you buy within the next week, however, it will be an interesting stock to watch, and could turn out to be a good investment as prices drop. Stock in this company recently received a huge boost thanks to high buyer demand created by excellent financial results. Prices at this stage are somewhat inflated, which is why it’s advisable to hold off to see whether current prices can be sustained.

Turtle Beach is a popular manufacturer of hardware accessories, including headsets used for PC, Xbox One, Sony PlayStation 4, and other devices.

Electronic Arts Inc. – NASDAQ: EA

One of the most valuable and oldest video game publishers in the United States; Electronic Arts has been a popular investment for a number of years. In addition to developing games within their own studios, Electronic Arts have also followed a policy of acquiring smaller studios for their intellectual property rights and development talent. EA generates significant revenue from its FIFA licensed games and Battlefield series of games.

EA stock value has grown 26.15% this year, and 18.58% over the past 12 months.

Take-Two Interactive Software Inc. – NASDAQ: TTWO

Take Two is a leading video game publisher with full ownership over key studios like Rockstar Games and 2K. Take-Two is responsible for some of the most positively received and highest grossing games of all time, including the Grand Theft Auto series.

Growth in stock value this year has been mild, with a 4.21% increase over 2018. 12-month growth looks much better, with 62.75% growth recorded as of mid-May. A highly anticipated game, Red Dead Redemption 2, is expected to drive significant revenue for the company within the next year, which could lead to strong growth in stock.

Activision Blizzard Inc. – NASDAQ: ATVI

Activision Blizzard controls studios responsible for games like World of Warcraft, Call of Duty, Guitar Hero, Overwatch, and the Destiny series. These games are responsible for high volume sales and critical acclaim within the video gaming press.

Year to date, the company stock value has increased by 13.23%, with 12-month growth tracking at 26.28%.

Activision Blizzard is one of the most profitable video game companies in the world, thanks to ownership of key intellectual property, and a history of producing excellent games with unprecedented longevity. As a growth stock, it’s a good option for anyone wanting to diversify into the video game subcategory of the Consumer Goods sector.

 

The video game industry is sometimes overlooked by casual investors. This is a mistake. The industry is responsible for strong growth and is supported by a booming consumer market. Diversifying to include some of these stocks (or similar stocks) could strengthen your portfolio in the long term.

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