Are These The Best Gaming Stocks To Buy In The Stock Market For 2022?
Gaming stocks have been gaining traction among investors in the stock market over the past few years. Whether we like it or not, the gaming industry is one of the fastest-growing sectors within the entertainment industry. Without question, demand for games increased dramatically during the coronavirus pandemic as most people were forced to stay indoors. As a result, even non-gamers were exposed to gaming. Moreover, China recently approved a significant number of video game titles, injecting a sense of optimism into its tech sector.
Building on this positive sentiment, some of China’s top names in the gaming space such as NetEase (NASDAQ: NTES) and Bilibili (NASDAQ: BILI) received a much-needed boost. Over the past month, both NTES stock and BILI stock have risen more than 20% and 40% respectively. Elsewhere, Activision (NASDAQ: ATVI) also recently announced that the highly anticipated Diablo Immortal™ will be live and available for download beginning June 22. Overall, the gaming space appears to be thriving and could continue to grow. So, here are some of the top gaming stocks to note in the stock market today.
Top Gaming Stocks To Watch Today
- Tencent Holdings (OTCMKTS: TCEHY)
- Penn National Gaming, Inc (NASDAQ: PENN)
- Take-Two Interactive Software, Inc (NASDAQ: TTWO)
- Electronic Arts Inc (NASDAQ: EA)
- Corsair Gaming Inc (NASDAQ: CRSR)
Tencent is an investment holding company principally involved in the provision of value-added services (VAS) and online advertising services. Its VAS segment is mainly involved in the provision of online/mobile games, community value-added services, and applications across various Internet and mobile platforms. On the other hand, the Online Advertising segment mainly engages in display-based and performance-based advertisements.
Earlier this week, the company announced that it will release its flagship mobile game Honor of Kings globally by the end of the year. The multiplayer game has been a consistent stream of revenue for the company, bringing in $10 billion in revenue between its launch in 2015 and September last year. Now, this is part of Tencent’s effort to expand its gaming market to international levels. This is an important step for any gaming company as the user base plays a pivotal role in the long-term growth of the game. With that in mind, would you consider adding TCEHY stock to your watchlist?
Following that, we have North America’s leading provider of integrated entertainment, sports content, and casino gaming, Penn National. The company’s highly differentiated strategy focuses on organic cross-selling opportunities. These are reinforced by its investments in owned technologies such as state-of-the-art media and betting platforms. On a sense of scale, Penn operates 44 properties in 20 states, iCasino in five, and online sports betting in 13 jurisdictions. Although PENN stock has been under pressure over the past year, the company’s fundamentals seem to be in better shape.
During its fiscal first quarter, Penn reported revenues of $1.56 billion, up 22.7% year-over-year. Along with that, the company posted an adjusted EBITDA of $434.6 million, representing an increase of 29.1% compared to the prior year’s quarter. These results reflect the company’s progress in meeting its strategic objectives. Based on its first quarter’s impressive showing, the company also increased its fiscal 2022 revenue guidance. Given these positive developments, should investors be paying more attention to PENN stock?
Another top gaming company that would be no stranger to most is Take-Two. In essence, the company primarily operates via its two core gaming studios. These would be Take-Two’s Rockstar Games, and 2K Games subsidiaries. Notably, Rockstar is behind industry-leading series’ such as Grand Theft Auto and Red Dead Redemption. Despite its massive portfolio, Take-Two does not appear to be slowing down anytime soon. In fact, TTWO stock has climbed more than 20% over the past month.
Last month, the company finally announced the completion of its merger with Zynga. This marks an important step for the company toward increasing its presence in the mobile gaming market. In the world of interactive entertainment, the mobile segment is currently the fastest-growing segment. Furthermore, Zynga will provide Take-Two with substantial cost synergies and revenue opportunities like never before. Keeping that in mind, would TTWO stock be a top gaming stock to watch?
Similar to Take-Two, Electronic Arts (EA) is one of the leading digital interactive entertainment companies in the world. In detail, the company develops, markets, publishes and delivers games and content that can be played by consumers on a range of platforms. This would include game consoles, personal computers, mobile phones, and tablets. Some of its most notable brands are Apex Legends, The Sims, FIFA, Madden NFL, and Star Wars. Despite trading sideways over the past year, EA stock has been picking up momentum lately. The stock has risen more than 20% within the past month.
Financially, EA just came off a record year in the fiscal year 2022. The company ended the year with a strong quarter of revenue and profit growth. Its revenue for the quarter was $1.38 billion, up 35.5% year-over-year. Meanwhile, its net income skyrocketed to $225 million, representing an increase of 196% compared to the prior year’s quarter. These were largely driven by its live services business which contributed 85% of its net bookings. Besides that, some of its notable highlights include the growth in FIFA Mobile which had the biggest quarter ever, with new unique players surging nearly 80% year-over-year. The company’s Apex Legends™ Season 12 also set a new record for the highest engagement since its launch. All things considered, do you think EA will continue on its current momentum?
To sum up the list, we have a company that contributes to the gaming industry through high-performance gears, Corsair Gaming. For those unaware, the company produces gaming keyboards, mice, headsets, controllers, and streaming gears. Its products also include high-performance power supply units, cooling solutions, computer cases, DRAM modules, and high-end gaming personal computers.
In May, Corsair unveiled its innovative first gaming and streaming laptop, the CORSAIR VOYAGER a1600 AMD Advantage™ Edition. This masterpiece combines Advanced Micro Devices’ (NASDAQ: AMD) Ryzen™ 6000 Series processor, AMD Radeon™ RX 6800M mobile graphics with CORSAIR and Elgato’s vast ecosystem of exclusive software and technologies. With it, users can do everything they need and more. Safe to say, Corsair is looking to be at the forefront of innovation within the gaming gear industry. At its current valuation, could CRSR stock be a potential bargain?