You may not have realized this before, but there is a major video game boom going on. Not only are there a lot of people picking up and playing their favorite games, but there are a lot of people tuning in to watch their favorite players engage in the games that they love so much.
With all of this going on, you probably want to know how you can make a profit off of the trend. It is possible for any savvy investor to generate a nice return for themselves by focusing on what the market is telling them and working on getting themselves positioned to take advantage of it.
If you decide that you might want to invest in some video game stocks, then you will need to pull up your trading platform and select the stocks that you want to buy. Before you do so, you may want to take a look at the list that we have compiled of video game stocks that are worth a look. Additionally, we will take a look at some of the trends in the video game world.
The Market is Exploding in Size
There is no question that video games have become a very big deal. There are plenty of players in the market already, and their size is only growing larger with time. There was a total of $177.8 billion worth of video games sales in 2020 alone, and that number is expected to rise even more in due time. It was already up 23.1% compared to the year prior.
Mobile games are on the rise as a lot of people like to simply turn on their phone to enjoy some of their favorite games. This sector of the market has seen a lot of players come in recently, and there are many stocks that one can buy that can take advantage of this trend.
Which are the Best Video Game Stocks to Buy?
It can be a challenge to attribute a specific value to any given stock at any time. Investors are always trying to figure out which stocks are the best, but it is largely a guessing game based on the past performance of the stock and what the future may hold for a company.
While we cannot guarantee you any particular result based on how you invest, we can say that some of the following companies have received a lot of notice in the video game world, and we believe this is significant given how expansive this market really is.
NeoGames is a choice that is highly favored by IBD Stock Checkup. It receives a score of 97 out of 100. This means that it outperformed 97% of other stocks on both technical and fundamental indicators in the last year.
This is an Israel-based company that produces computers and other gaming technologies for state lotteries and other companies that are directly involved in the legal gambling industry. Many investors see a lot of growth in that market as gambling becomes legalized throughout more parts of the world than ever before.
Sony and Tencent are two other stocks that a lot of investors have their eyes on right now. They are intrigued by the fact that these two companies have a diversified field of options that they can use to make a profit in the gaming industry.
Not only do they offer some of the best options as far as video games are concerned, but both companies also have other products and services that they can offer to customers that may bring them a lot of value as well.
Therefore, there are a lot of reasons to at least consider those two major players in the industry.
New Consoles and Opportunities
Although much of the gaming stock trade used to revolve around the release of new consoles, that isn’t the case as much anymore. Mobile games are making up an increasing percentage of the sales that the industry generates, and that is where investors should focus their energies as they try to find the stocks that will produce the largest return for them.
Try to get money into mobile game developers that are producing games that are highly addictive and fun. Also, investors ought to look to companies that operate in the eSports space when they can as well. This is a rapidly growing field with a lot of fans. It seems that more and more competitions are likely to occur in the near future, and companies that provide the games for those competitions may benefit. Happy investing!