Electronic Arts hold licenses to several notable franchises, including Madden NFL, FIFA, NHL, NBA Live and Battlefield. Due to a large number of these franchises, EA has managed several years of double-digit revenue growth. Similarly, the latest generation consoles from Sony and Microsoft are set to enjoy impressive sales growth in the coming years. According to a third-party estimate, the annual sales of Sony’s PlayStation 5 console could hit 50 million by 2023, compared to nearly 5 million last year. Meanwhile, the Xbox Series X could clock annual shipments of 30 million units in 2023, compared to an estimated 3.3 million units last year.
Media Sentiment Over Time
In addition to mobile games like Honor of Kings, the company profits from messaging services like WeChat and QQ and its social networking service Qzone. Ltd. manufactures video game platforms, card decks, home and handheld consoles and software. One of the best-known and best-established brands in gaming, Nintendo has come under fire lately due to lackluster sales and new-release delays, but long-term investors still believe in a turnaround. Only two analysts on Wall Street currently follow Nintendo, but they both have a “strong buy” rating on the company. Sony Group Corporation is a large Japanese conglomerate, selling many of the world’s most popular electronics products.
A Decade of Growth: The Best Stocks To Buy and Keep for the Next 10 Years
- 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.
- 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.
- Although the company isn’t yet profitable, it shows long-term promise, and analysts rate it a strong buy.
The unexpected jump came from strong sales of graphics processing units that are used for video games and other types of digital media production, like animation or 3D modeling workflows. The gaming business will be a key factor in driving AMD’s earnings growth in the long run. Analysts expect the company to clock 35%-plus annual earnings growth for the next five years, making AMD an ideal bet for investors looking to buy a video gaming stock right now. Consider that over the past few months, several video game companies enjoyed blockbuster starts to their publicly traded lives. For instance, in January, Playtika (PLTK) launched its initial public offering (IPO) by selling 69.5 million shares at $27, much higher than its projected range of $22 to $24.
Investing in Video Game Stocks
Zynga, which is on the “Stifel Select List,” is “continuing a theme of healthy engagement across mobile gaming.” Consider a few of our favorites below as you aim to access the gaming industry, investing in video video game company stocks game companies, gaming gear, your favorite video game franchises and more. Today’s video games are much more complex and immersive, with branching storylines, HD graphics and distinct control systems.
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However, the stock is poised to rebound as management executes a strategy to double down on its best-selling titles while cutting costs to bolster profitability. Looking beyond the next two years, mobile gaming is another big opportunity for Take-Two. As mobile devices become more capable in their graphical performance, leading game makers are increasingly investing in this growing market. Take-Two has put its stake in the ground with the $12.7 billion acquisition of Zynga. That might seem like a big bite out of the apple, but the transaction is quite small next to the estimated $173 billion that the mobile gaming market pulls in every year, according to Statista.
Take-Two Interactive makes some of the most famous household-name games on the planet. The record-breaking Grand Theft Auto series, for instance, has sold over 335 million units. Grand Theft Auto V alone shipped over 155 million units, making it the best-selling game of all time. Meanwhile, the Red Dead Redemption series has sold over 62 million units globally. The strong demand for AMD’s graphics cards and CPUs drove impressive growth in the company’s computing and graphics segment in the third quarter. The segment recorded 44% year-over-year growth to $2.4 billion, and it could keep getting better as PC hardware sales increase.
UBS also lists EA among its Buy-worthy video game stocks and gives it a 12-month price target of $170 (29% upside). Rounding out our list of the best gaming stocks to buy, Electronic Arts stock trades at an 10% discount. Electronic Arts is one of the world’s largest video game publishers and owns some of the most well-known video game franchises, including Sports FC (formerly FIFA), Madden, and Battlefield. We expect the firm will continue developing compelling new versions of its existing franchises, generating cash flow that provides the ability to invest in new titles and acquire established ones. The brand is strong because it holds an impressive number of stocks in other video game companies. An increase in mobile game popularity in China is driving demand for Tencent branded games.
Banks including Goldman Sachs and JPMorgan have already taken similar action, in moves that were first revealed by Sky News. The Tokyo Stock Exchange has been dropping for three days in a row, closing with the https://investmentsanalysis.info/ biggest drop since the 1987 market crash, according to Reuters. After a round of layoffs that left a huge number of game developers without employment, Bungie is apparently still hiring for other roles.
However, it can be hard to pick the companies that are going to be long-term winners or sustain their initial success. Overall, most gaming companies are in the “high-risk, high-reward” category. The Japanese company recently released Resident Evil 4, Street Fighter 6 and Dragon’s Dogma 2, pointing to the continuing success of the company’s popular franchises. Things are looking rough for many tech companies at the moment with share prices plummeting left and right. The Tokyo Stock Exchange is not at all unaffected by the phenomenon with most of the large Japanese video game companies getting caught up in the general downturn. Ubisoft sees more growth ahead in the free-to-play game market, which is the most popular category in gaming today with more than 2.5 billion players.
Activision Blizzard (ATVI, $92.94) is one of the largest video game developers in the world. Its core franchises – which include Call of Duty, World of Warcraft, Candy Crush and Overwatch – are household names, which is no mean feat in an intensely competitive market. Activision titles are played on consoles, personal computers and mobile devices. Founded in 1993, Take-Two consists of two wholly owned labels, Rockstar Games and 2K. The firm is one of the world’s largest independent video game publishers on consoles, PCs, smartphones, and tablets. Take-Two’s franchise portfolio is headlined by “Grand Theft Auto” (345 million units sold) and contains other well-known titles such as “NBA 2K,” “Civilization,” “Borderlands,” “Bioshock,” and “Xcom.”.