Are These 3 Video Game Stocks The Best Stocks To Buy Now?
During the beginning of the novel coronavirus pandemic, looking for video game stocks to buy was a common thought. After all, millions of people globally had to stay home for weeks if not months. And there were limited entertainment options at home during this unprecedented time. Since most people are working and playing from home, video games have emerged as an option for people to fill up their time. As more and more people opt for gaming, top video game stocks in the stock market have continued to prosper.
The video game industry is looking at long-term growth with more people pursuing it as a hobby. Investors are also keen on its potential monetization avenues including advertising and in-app purchases. If you are an avid gamer, you will most probably come across companies like Activision Blizzard (ATVI Stock Report) or Take-Two Interactive (TTWO Stock Report) when playing blockbuster games. However, it is a large industry and there are a number of best video game stocks to buy. Having said that, let’s take a look at three video game stocks that are trending in the market in recent weeks.
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Top Video Game Stocks To Watch For September 2020: Sony
As Sony (SNE Stock Report) prepares to launch the highly anticipated PlayStation 5 console this holiday season, investors are paying close attention to SNE stock. This came after PS5 preorders sold out rapidly after a number of retailers unexpectedly began offering them on Wednesday. The company will release more PS5 consoles for pre-orders in the coming days. Retailers are going to share more details soon. Despite a temporary pull-back along with the broader market in March, SNE stock has been showing consistent uptrend since then. The stock is up 14% year-to-date, signaling investors’ confidence in the gaming company.
Investors might be looking at SNE stock as a top video game stock to buy in light of its prospects for continued growth with the launch of the PS5. But moving forward, unlike previous console cycles, the battle among video game consoles will not focus on unit sales. But rather it will be on the number of subscribers as cloud gaming turns mainstream.
The ability to download a game was a truly defining experience for PS4 and Xbox One users. But like the broader software trend, everything is moving towards a subscription model. Sony sold more than 112 million PS4 units, which is twice the sales of the Xbox One. But the real icing on the cake is that Sony now has about 45 million subscribers to PlayStation Plus.
Top Video Game Stocks To Watch For September 2020: Tencent
Tencent Holdings (TCEHY Stock Report) may not come as an obvious name among international gamers. In fact, it is more well known for its super-app WeChat. But the truth is, the Chinese multimedia conglomerate is the world’s largest video gaming company by revenue, even bigger than Activision.
The company’s hit game League of Legends has been going strong since its release in 2009. TCEHY stock is probably the best gaming stock you can find in the market. If you are an early investor who invested $1,000 in 2008, you will have $48,000 today.
Also, the game stands as a top contender in esports. Not to mention that Tencent also owns the hugely popular mobile game Honor of Kings. Besides its own titles, the company holds substantial stakes in other video game makers including Epic Games, Activision Blizzard, and Ubisoft (UBSFF Stock Report). As most of these top video game stocks continue to exhibit strong growth, TCEHY stock will be reaping the gains in the long run.
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Top Video Game Stocks To Watch For September 2020: Zynga
Last, but not least, on this list of video game stocks to buy for big gains is mobile video game publisher Zynga (ZNGA Stock Report). 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. Zynga went public on the NASDAQ in 2011. The company is not afraid of acquisitions as well. In June 2020, Zynga purchased Peak, a Turkish game developer for $1.8 billion.
Before the coronavirus pandemic, ZNGA stock was trading at $7 a share on average. Since then, ZNGA stock price has been on the rise. As of September 18th, ZNGA stock is at $8.46 a share on average. This means that the ZNGA stock price is 36.45% higher than it was back in March.
As of Friday’s closing, Zynga is a $9.1 billion company. You may say it is a “small-cap” stock in comparison with the top video game stocks we have on the market today. If mobile gaming does explode over the next decade, to the extent that it becomes an equally large market as console gaming, then chances are Zynga could join the top dogs one day. Zynga’s best days are yet to come.