Why Are Investors Bullish On These 2 Top Video Game Stocks?
In recent months we have seen many gaming stocks rise up in the market. The coronavirus pandemic caused everyone to be inside their houses much more. So this means that video games have been on the rise since for many it is the only fun activity to do at home. The video game industry at large has grown from this pandemic.
Video game sales and the player count has been very high during the pandemic. People are purchasing things that are related to video games as well. This could be consoles, computers, controllers, and more. This has obviously meant well for gaming stocks. Investors have turned to game stocks as a way to make a profit during the pandemic. Many gaming stocks have been reaching new highs in the market.
It is expected for gaming companies to continue growing larger in the future. The gaming industry continues to grow year by year and become more mainstream. Gaming livestreamers are bringing in millions of dollars a year, and the same goes for entertainers and eSports players. As such a large industry you may have trouble knowing which gaming stocks to look at. So that’s why we are going to look at two gaming stocks that are trending in the market.
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Best Gaming Stocks To Watch In August: Zynga
The first gaming stock to watch is Zynga Inc. (ZNGA Stock Report) due to its recent force in the market. Some of Zynga’s successes you may have heard of are FarmVille, Words With Friends, and CSR Racing. In 2018 alone Zynga brought in more than $907 billion in revenue. Back in 2011 is when Zynga went public on the NASDAQ. The company is not afraid of acquisitions as well. In June of 2020, Zynga purchased Peak, a Turkish game developer for $1.8 billion.
Before this pandemic started, ZNGA stock was at $7 a share on average. Since then, ZNGA stock price has been on the rise. As of August 4th, ZNGA stock is at $10.17 a share on average. This means that the ZNGA stock price is 45.28% higher than it was back in March. From July 29th to August 4th, ZNGA stock is up 6.26% as well. ZNGA stock price was at $9.57 on the 29th and reached $10.17 on the 4th.
Zynga has been on the rise because of the current rise of video games. Revenue for the company was up 52% to $404 million in just the first quarter of the year. Between the company itself and the other developers that it owns, Zynga is able to make a solid profit. That is why investors are choosing to place their money in ZNGA stock. That is the exact reason why ZNGA stock is a gaming stock to watch going into August.
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Best Gaming Stocks To Watch In August: Take-Two Interactive Software
The next gaming stock to watch is Take-Two Interactive Software Inc. (TTWO Stock Report). Take-Two has been able to reach a new high in the market. The company primarily operates by owning other video game-related companies. Some of the publishers it owns are 2K and Rockstar Games which are some of the largest developers in the world. Some of the games in the catalog of companies it owns are Grand Theft Auto, NBA 2K, Mafia, WWE 2K, and many more. Take-Two is the third-largest publicly-traded gaming company in the US and Europe as well.
It is no surprise that TTWO stock price has been on the rise recently. Take-Two owns so many large video game titles that are being played much more. TTWO stock price was at $115 in February before the pandemic came through and messed up the stock market. But it was a different story for TTWO stock. TTWO stock price has been on the rise ever since. As of August 4th, TTWO stock is at $176 a share which is just about its 52 week high.
Bottom Line
The rise in the market for ZNGA stock and TTWO stock has been very great for these companies. The rise in gaming stocks has been very interesting to see in recent months. Investors have been very interested in all types of gaming stocks. That is why TTWO stock and ZNGA stock are two potential gaming stocks to buy going into August.
