Imagine walking into a virtual world where you can battle mythical creatures, design magnificent cities, or solve intricate puzzles. That’s the realm of the entertainment sector, specifically, video game stocks. Video game companies design, develop and sell video games, a form of entertainment that has exploded in popularity over the past few decades. Today, they are a multi-billion dollar industry that spans across platforms like consoles (think PlayStation or Xbox), PCs, and increasingly, mobile devices. These companies also often develop hardware, such as gaming consoles, and sometimes even host online multiplayer platforms.
The business of video games is more complex than just making a game and selling it, though. These companies rely on a variety of revenue streams, including game sales, subscriptions to online services, in-game purchases (like buying a new outfit for your character), and even advertising. Some companies also earn income from esports, a competitive gaming scene that draws massive online audiences and big-name sponsors.
Investing in video game stocks allows you to tap into this exciting industry’s growth. As gaming technology continues to advance and the world becomes increasingly digital, the demand for video games shows no sign of slowing down. Just remember, though, like all investments, video game stocks come with risk. The success of these companies often depends on the popularity of their games, which can be hit-or-miss. But for those who believe in the future of gaming, video game stocks could be an exciting addition to your portfolio. That said, here are two video game stocks to check out in the stock market today.
Video Game Stocks To Watch Right Now
- Electronic Arts Inc. (NASDAQ: EA)
- Roblox Corporation (NYSE: RBLX)
Electronic Arts (EA Stock)
Electronic Arts Inc. (EA) is a long-standing participant in the video game industry. The company’s portfolio is diverse, encompassing widely recognized sports franchises like Madden NFL and FIFA, as well as action-oriented games such as Battlefield and Apex Legends.
Last month, Electronics Arts released its Q4 2023 financial and operating results. The company reported earnings of $1.78 per share, surpassing the consensus estimate of $1.31 per share. Similarly, its reported revenue of $1.9 billion exceeded the projected $1.8 billion, marking a 2.7% growth from the same quarter the previous year. Additionally, EA provided forward guidance for the next quarter, expecting non-GAAP earnings to be between $0.98 and $1.14 per share, and forecasting revenue to fall between $1.825 billion and $1.925 billion.
So far in 2023 year-to-date, EA stock has advanced by 3.44%. Meanwhile, as of Monday’s closing bell, shares of EA stock are trading at $127.02 a share.
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Roblox Corporation (RBLX Stock)
Next, Roblox Corporation (RBLX), a newer entrant in the gaming landscape, operates an online platform that enables users to design, share, and participate in their own games. This model is somewhat unique within the sector, fostering a strong community of both developers and players.
In the first quarter of 2023, Roblox Corporation (RBLX) disclosed a loss of $0.44 per share, a bit more significant than the consensus estimate which anticipated a loss of $0.42 per share. The company’s revenue for the quarter was $655.3 million, lower than the predicted figure of $766.2 million. Despite missing these estimates, Roblox still demonstrated year-over-year growth, with its revenue seeing an increase of 22.0% compared to the same quarter in the previous year.
Year-to-date, shares of RBLX stock have moved higher by 46.46% so far. While to close out Monday’s trading session, Roblox stock finished the day at $40.79 a share.
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