It is no surprise that video game stocks have been able to benefit from the pandemic. This coronavirus pandemic has caused people to stay inside more than ever before. For this reason, many top video game stocks to watch have been able to avoid the fate that many other sectors of the market had. This is because video games are in the digital market. Things like e-commerce, video games, cloud services, and more are all up. With Microsoft (MSFT Stock Report) and Sony (SNE Stock Report) gearing up to release new consoles, and NVIDIA (NVDA Stock Report) and AMD (AMD Stock Report) on the graphics card side of things, there is no slowing down for video games at the moment.
This means that video game hardware companies, developers, software corporations, and more are all increasing in the stock price as a result of video games. This pandemic has spiked the number of users on video games, so it is no surprise that financials have reflected positively for these companies. So with that being said, let’s look at three video game stocks that have been performing well in the stock market as a result of this trend taking off in 2020.
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First up on this list of video game stocks to buy or sell is Electronic Arts Inc. (EA Stock Report). Electronic Arts is actively one of the largest gaming publishers in the entire world. The company has grown to become the largest video game company in all of the United States and Europe by revenue and market cap. It produces a plethora of popular video game titles such as Need For Speed, EA Sports, Star Wars, Battlefield, The Sims, and many more. So now let’s take a dive into what the recent financials and news looks like from this video game giant.
Back in September, the company reported second-quarter financial results that were very positive. It reported net revenue of $1.46 billion, beating estimates of $1.05 billion by a very large margin. It also reported earnings of $1.25 per share for investors, beating $1.02 per share estimates. This has driven EA stock much higher than predicted by analysts. EA stock price is at $126 a share on average as of October 26th.
This is more than 16% higher than it was when the year started. EA has announced that it will be releasing its second-quarter fiscal year 2021 results on November 5th, 2020. It will host a conference call and a press release talking about its business and financial performance. That is why EA stock has made this list of video game stocks to watch. As a respective leader in its industry, it has been able to hold its own and grow successfully throughout 2020.Top Video Game Stocks To Buy [Or Sell] In November 2020: Take-Two Interactive Software Inc.
The next company on this list of the 3 top video game stocks to buy or sell is Take-Two Interactive Software Inc. (TTWO Stock Report). Take-Two Interactive Software is another video game company that is seeing the benefits that have come to the sector from the pandemic this year. The company actively owns two of the largest video game producing studios known as Rockstar Games and 2K. These studios produce successful games such as Grand Theft Auto, Red Dead Redemption, NBA 2K, Borderlands, and many more titles. Grand Theft Auto to date is one of the largest grossing video games of all time. So naturally, this company is also a large leader in the video game market. It is the third-largest publicly traded video game company in the United States currently. Now for the recent news regarding this video game stock, TTWO stock.
TTWO stock has been increasing in price all throughout 2020. This is due to its positive financial reports throughout the year. Its net revenue increased 54% and digital net revenue increased 70% in its last financial report. The company has gone up more than 32% in shares throughout 2020 as of October 26th. On the 26th, TTWO stock price sits at $165 a share on average. At the start of the year, that number was just $125 a share. Its Rockstar Games studio also acquired Ruffian Games on October 14th. This acquisition is grand, as Ruffian has worked on popular games such as Crackdown, Halo: Reach, among many more.
The co-founder of Ruffian, Billy Thompson said, “Not only do we have the opportunity to work on some of the most successful entertainment properties in the world, but Rockstar’s investment in our studio is a great sign for the continued expansion of game development here in Scotland.” in regards to the acquisition. That is why TTWO stock has made this list of the 3 top video game stocks to buy or sell in October.Top Video Game Stocks To Buy [Or Sell] In November 2020: Activision Blizzard Inc.
The final video game stock on this list, Activision Blizzard Inc. (ATVI Stock Report), is one of the largest in the sector. Activision Blizzard is a video game company actively owning and operating a plethora of video game studios. These studios include Treyarch, Blizzard Entertainment, Infinity Ward, King, upon many others. Its popular published games include Overwatch, Call of Duty, World of Warcraft, and more. The popular video game company has had some recent news, so let’s dive in and see what has been up with Activision Blizzard Inc.
Back in August, the company reported net revenues of $1.59 billion, which was up against $1.09 billion the previous year. Obviously, this had a great effect on ATVI stock price. ATVI stock price is up more than 33% in 2020. Well, why has ATVI stock made this list you may ask? Well, Activision Blizzard will be the first video game company to report third-quarter earnings on October 29th.
This has investors wondering what the case will be with its financials. The likely opinion is that Activision’s financials will reflect the strong sales and demand led by the pandemic situation. That is why ATVI stock has made the last spot on this list of video game stocks to buy or sell.