Has The COVID-19 Pandemic Created The Perfect Storm For These 2 Top Video Game Stocks?
Many video game stocks have been able to avoid the fate that many other sectors of the market had. Digital has been the most prevalent in our lives because of stay at home orders. Things like e-commerce, video games, and video views are all up. This means that many top video game stocks recovered fast or reached new highs entirely.
Video games are being played more than ever because of the coronavirus. People are staying inside and thus playing more video games. This means that game releases are seeing huge launches. Player counts are spiking and live stream views are way up as well. Even when the world reopens that doesn’t mean people are going to stop playing video games too. Gaming has been a huge growing hobby for a very long time.
There are many good video game stocks to watch in the stock market today that have been trending. So today we are going to talk about two video game stocks that are doing well in the market. This could be due to increased sales or keeping the company afloat despite the struggles.
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Top Stocks To Buy [Or Avoid] During The Second Half Of 2020: Activision Blizzard
The first video game stock to watch is Activision Blizzard Inc. (ATVI Stock Report) due to its recent momentum in the market. Activision Blizzard was founded in 2008 via a merger between Activision Inc. and Vivendi Games. ATVI stock is included in the S&P 500. Activision owns and operates many independent gaming studios. It also owns Blizzard Entertainment, Major League Gaming, King, and more. Its gaming studios produce games such as Call of Duty, Guitar Hero, World of Warcraft, and many more. Activision Blizzard is doing very well as a result of the coronavirus pandemic
Shares of ATVI stock were around $63 a share on average before the economic crash. At the peak of the crash ATVI stock price fell to $52 a share. This is very good compared to many other stocks. ATVI stock price has since risen to $77 a share as of July 2nd. This places ATVI stock almost at an all time record high in share price. The record high for ATVI stock price was in September 2018, when it reached around $83 a share for a brief moment. This means that ATVI stock is very close to reaching that height once again. ATVI stock price is also much higher than before the pandemic, increasing 22%.
It is possible for ATVI stock to continue climbing as time goes on. With talks of a second coronavirus wave, video games will continue rapidly increasing in sales. This is because people are going to start staying inside more once again. Many restaurants that opened are being forced to close again, as well as beaches and other businesses. This will cause people to stay inside and could be great for ATVI stock and the company as a whole.
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Top Stocks To Buy [Or Avoid] During The Second Half Of 2020: Take-Two Interactive Software
The second video game stock to watch is Take-Two Interactive Software Inc. (TTWO Stock Report) due to its recent heights in the market. Take-Two Interactive was founded in 1993 by Ryan Brent. TTWO stock has been on the rise due to the pandemic as well. Take-Two owns and operates many independent gaming studios such as Rockstar Games and 2K. These are two major publishing labels that are renowned in the gaming community. These studios create games such as NBA 2K, Grand Theft Auto, Bioshock, Borderlands, and more.
Take-Two Interactive is the third largest publicly traded company in the video game sector in the Americans and Europe. The only companies ahead of them are Activision Blizzard and Electronic Arts aka EA. Take-Two has a market cap of $13 billion USD. Shares of TTWO stock have been on the rise. At the start of the economic crash, TTWO stock price was around $113 a share on average. As of July 2nd, TTWO stock is at $144 a share on average. This 27% increase is due to the rise of video games during the pandemic. This is just $2 down from its all time high of $146 a share that was reached in May. Being the owner of multiple large gaming studios means its profits have risen with its video games.
As you can see, the rise of some video game stocks is very real during these times. ATVI stock and TTWO stock were able to rise to or get close to new heights. As news continues to develop for the coronavirus, it seems like we are still going to be stuck at home for a while. Video game developers are profiting from this big time. That is why it is important to look at which companies are potential video game stocks stocks to buy.