Video game stocks: Top Video Game Stocks
If the upcoming acquisition of Activision Blizzard goes through it will be left as one of the biggest pure-play video game developers by market cap. In further contrast to Sony or MSFT, Nintendo is a video game company through and through. Its current console, the Switch, has been a huge success – driven partly by massive stay-at-home demand during global lockdowns. Microsoft has said it intends to pursue the acquisition anyway, so the story is far from over. But if regulators do start taking a closer look at M&A activity within video games, it could have significant fallout for the future of the sector. In January, Microsoft announced that it was planning on purchasing Activision Blizzard – a publishing giant that has been rocked by scandals in recent years – for $68.7 billion.
We believe the firm is well placed to consolidate its leading position by developing compelling new versions of its existing franchises and by introducing new experiences, such as Overwatch. We expect Activision to continue to benefit from ongoing console demand, the ongoing revitalization of PC gaming, and the growth in the mobile market via King. This list includes stocks of companies who get a significant percentage of their revenue from video games or gaming-related products. Video game companies are competing to provide the most popular form of entertainment.
Publishers and developers
Today it trades at around $40, down from its initial peak but still well above the 2020 lows. In its July earnings call, Sony revealed that its gaming operation had shrunk slightly year-on-year – although it was still the company’s biggest division. These stocks include some of the biggest names in industry, such as Nintendo NTDOY and Roblox RBLX. Stock Screener Filter, sort and analyze all stocks to find your next investment.
These are the video game stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at. These are the video game stocks with the lowest 12-month trailingprice-to-earnings (P/E)ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated. Here are the top three video game stocks with the best value, the fastest growth, and the best performance. The most undervalued video game stock is Ubisoft, an entertainment developer, trading at a 46% discount to Morningstar’s fair value estimate.
Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Investors will hope that the upcoming Mario + Rabbids sequel and Skull and Bones – a title with a long, troubled development – can revive the company’s fortunes. In contrast to many of its rivals listed here, EA delivered solid earnings in Q1 2023, with revenue and EPS both coming in well ahead of expectations.
Best Video Game & Gaming Stocks
People love all kinds of entertainment, and video games offer a broad range of experiences that can be uniquely compelling. As restrictions lifted, however, video game companies could no longer count on a captive user base at home. In addition, supply chain issues in recent months have depressed video game stocks. The root cause is supply chain bottlenecks that prevented video game companies from producing enough game console products to meet demand, including Sony’s PlayStation 5 console. “Activision Blizzard is one of the world’s largest third-party video game publishers and owns some of the largest and well-known video game franchises, including Call of Duty and World of Warcraft.
Activision Blizzard owns some iconic franchises, including Call of Duty, World of Warcraft, and Candy Crush. Gaming hardware stocks don’t end with the ‘big three’, and there are lots of other options you can investigate. One is Corsair Gaming, a computer hardware and peripherals company that sells high-end hardware to the PC gaming market. The company’s gaming strategy has shifted in recent years, away from a total focus on console sales and towards its Xbox Game Pass subscription model.
Most recently, Capcom’s Resident Evil Village topped 5 million units sold since its May 2021 launch. Video game developer and publisher Capcom is thriving, thanks to successful releases that have strengthened its key franchises and produced impressive sales and earnings growth. In addition to its Resident Evil and Monster Hunter franchises, the company’s properties include Mega Man, Devil May Cry, and Street Fighter. Like its rival Microsoft, Sony is much bigger than its gaming division, with operations in film, consumer electronics, music and more. However, Sony’s video game output is massive, making it the world’s biggest console manufacturer and game publisher by revenue. Will 2023 and beyond see yet more consolidation among video game companies, or will increased regulatory oversight put the major stocks off?
The video game industry is involved in the development, marketing, and sale of video game hardware and software. Video game industry sales generally performed well early in the COVID-19 pandemic as business shutdowns and social-distancing measures limited peoples’ entertainment options. Because consumers can play video games in the home, they have become a popular option. One of the industry’s challenges retaining newly minted gamers as employees return to work at offices amid the reopening of the the economy after the COVID-19 pandemic. “Take-Two is one of the larger third-party video game publishers and owns one of the largest most well-known video game franchises in Grand Theft Auto. With the acquisition of Zynga, the company is now also one of the largest mobile game publishers.
Roblox
Over the past years, the firm has established iconic titles such as Onmyoji, Knives Out, and Identity V. Every year, the company publishes dozens of games across almost every genre and game play. In addition, NetEase is also collaborating with firms such as Blizzard, Marvel, and Microsoft to release games based on famous global intellectual property like Diablo, Harry Potter, and Lord of the Rings. Over the foreseeable future, we expect NetEase to continue to leverage its in-house research and development team and user data to develop next-generation games.
With the company planning on leveraging Activision Blizzard’s key IP to boost subscriptions to its Xbox Game Pass service – and console sales – the decision is a major blow to Microsoft’s plans. Several gaming companies are facing issues on several fronts, with an ongoing chip shortage causing bottlenecks in console production and release schedules still plagued by Covid delays. Russia’s invasion of Ukraine also saw many leading players pull out of the country, cutting off a key market. Social media marketing is the use of social media platforms to interact with customers to build brands, increase sales, and drive website traffic. These include white papers, government data, original reporting, and interviews with industry experts.
Take-Two Interactive’s valuation has grown rapidly due to stellar performances by its core franchises. Grand Theft Auto is the company’s biggest and most important property, and, as a series, one of the most profitable in all of gaming entertainment. Take-Two’s Red Dead Redemption series is being well-received, and its NBA 2K basketball series is a leader in the sports game category. The company also owns a variety of smaller series and other development initiatives that help to drive growth. Founded all the way back in 1982, EA was an early pioneer in the home computer games market.
Sony (SONY)
During 2022, the gaming index fell 16.1%, outperforming the 20.7% decline in the overall U.S. stock market. Nintendo is notable for making many of the most popular games on its own systems. Iconic franchises such as Mario, Zelda, Super Smash Bros., Animal Crossing, and Pokemon have spawned an endless series of games and hundreds of millions of unit sales over the years.
Tencent stock has struggled since peaking at the outset of 2021, with its ADR falling from $90 down below $40 by August 2022. The company had seen a significant recent uplift in revenues thanks to COVID-19, which had driven demand for its products. But its share price has struggled since the listing, halving from $34 down to below $17.
This was on top of several other purchases by the tech giant in recent years, including Zenimax Media , Obsidian Entertainment and Double Fine. Video game companies benefited in the early stages of the COVID-19 pandemic as many consumers sheltered at home and turned to at-home entertainment. A June 2020 report by analytics firm Nielsen suggested that four out of five global consumers had played or watched video game content by that stage of the pandemic. We sell different types of products and services to both investment professionals and individual investors.
