Niche investment opportunities are becoming more popular as investing becomes more widely available to the average person. Investors are increasingly interested in well-known brands that offer a sense of nostalgia or excitement. For investors interested in the video game industry, which game stocks are worth the investment?
Read: Want to Diversify in a Bear Market? Consider these 6 alternative investments
Top 10 Gaming Stocks to Buy Now in 2022
All figures in the table below are based on data collected on October 7, 2022 from Nasdaq.com.
| gaming stock | Share value | One year goal | Share volume |
|---|---|---|---|
| Electronic Art (EA) | $123.66 | $153.50 | 1,558,342 |
| Take-Two Interactive Software (TTWO) | $121.38 | $167.50 | 2.031.007 |
| Nintendo (NTDOF) | $41.28 | N/A | 564,016 |
| Activision Blizzard (ATVI) | $73.83 | $95 | 564,016 |
| Tencent (TCEHY) | $35.21 | N/A | 2,516,893 |
| SciPlay (SCPL) | $12.63 | $15 | 169.602 |
| Nvidia Corp. (NVDA) | $131.30 | $200 | 64,415,690 |
| Microsoft Corp. (MSFT) | $246.79 | $320 | 20,239,890 |
| Alphabet Inc. (GOOGL) | $101.42 | $147.50 | 22,323,990 |
| Sea Ltd. (SE) | $61.92 | $112 | 4,227,787 |
1. Electronic Art (EA)
EA, with its widely popular EA Sports subsection, generates the majority of its revenue from game downloads within brands such as FIFA and Madden. Based on historical trends, experts believe that Electronic Arts will outperform other video game brands with lower quality scores. It was recently in the 75th percentile for asset returns and in the 86th percentile for repurchase returns.
2. Take-Two Interactive Software (TTWO)
This company represents two popular gaming brands: Rockstar Games and 2K. Grand Theft Auto and NBA 2K are two popular games that many people may recognize. It reported that revenue in the first quarter of 2023 was up 36% from the prior year to $1.1 billion.
3. Nintendo (NTDOF)
Japan-based Nintendo Co. Ltd. produces video game platforms, card games, home and handheld consoles and software. One of the best known and best established brands in gaming, Nintendo has come under fire lately for lackluster sales and delays in new releases, but things seem to be improving.
A recent 10-for-1 stock split caused stock prices to drop, which could attract new investors, especially young people who grew up playing Nintendo games. And the company has had some recent successes, such as record domestic sales – Japanese – of its Splatoon 3, CNBC reported.
4. Activision Blizzard (ATVI)
As one of the largest video game brands in the world, Activision has video game brands such as:
- Duty
- Candy Crush
- overwatch
- World of Warcraft
Experts expect Activision’s inventory value to grow by nearly 30% in the coming year. One reason for these estimates is that Activision has plans for video game innovation to generate new revenue streams for the company.
5. Tencent (TCEHY)
This is the largest stock of video games in the world by revenue. The brand is strong because it has an impressive number of shares in other video game companies. An increase in the popularity of mobile games in China is fueling the demand for Tencent branded games. The company’s revenue shows a trend with an expected growth of 20 percent on average in the coming years.
6. SciPlay (SCPL)
This brand is known for casino-like online games. It reported solid profits in the first half of fiscal 2023. One advantage of SciPlay is that the company ended 2021 with little debt and $364.4 million in cash.
7. Nvidia Corp. (NVDA)
Nvidia innovates the powerful graphics cards needed for the best video game performance. Many esports leagues and streaming influencers have Nvidia as their graphics card brand of choice.
In the second quarter of 2022, Nvidia saw a 33% drop in revenue within the gaming segment as demand shifts in the pandemic and retailers reduce inventory to make room for new products. Looking ahead, the company expects the decline to be partially offset by growth in its data center and automotive segments.
8.MicrosoftCorp. (MSFT)
Microsoft is known for its professional software and cloud services. Microsoft is a household name. But many people don’t know that it is also a big player in the game industry. In its earnings report for the second quarter of 2022, the company announced a 10% increase in revenue from Xbox content and services compared to the second quarter of 2021. Ongoing product launches and new licensing partnerships indicate that revenues are in a continue upward trend.
9. Alphabet Inc. (GOOG, GOOGL)
Alphabet is the umbrella company of Google and YouTube, and according to Fortune not only the most profitable gaming company on this list, but also the third most profitable in the world. Many people may not relate these names to gaming, but YouTube had 431,000 unique streaming channels on YouTube Gaming Live in the first quarter of 2022, Statista reported.
YouTube ads generated revenue of $7.34 billion in the second quarter of 2022, nearly 5% more than last year.
10. Sea Ltd. (SE)
Sea Ltd. is an umbrella company for three brands: Garena, Shopee and SeaMoney. One of these segments has an impressive presence in Latin America, Taiwan and Southeast Asia. Garena makes online games for mobile devices and PCs.
In the second quarter of 2022, Sea Ltd. an increase in sales of 29% and an increase in total gross profit of 17.1% year-over-year. While the company is not yet profitable, it holds a long-term promise and analysts rate it as a strong buy.
How to buy game stocks
The easiest way to buy gambling stocks is to open a brokerage account from which you can place your orders. With an online brokerage such as Fidelity you can place orders yourself or have the broker place orders for you for a fee. You can also use an investment app like Robinhood or Webull to place your own orders. Here’s what to do once you’ve selected a broker or app.
Buy gaming stocks
- Open an account. You must provide contact information as well as your Social Security number and details about your finances and investment experience.
- Fund your account. Before you can buy stocks, you need to transfer money to your trading account. You can usually do this by linking a checking account to your investment account.
- Select which stocks you want to invest in. Online brokers and investment apps often have research tools that you can use to learn more about companies you are considering investing in. You can also find a wealth of financial information in the “Investors” section of the companies’ websites. There they post earnings reports and other financial documents.
- Place an order. Find the stocks you want to buy on the brokerage website or app and click the “Trade” button. Enter the number of shares – or, if you’re buying a fractional share, enter the dollar amount you want to invest. Then view and submit your order.
To take off
The video game industry is booming and years of growth are expected as new technology challenges the industry to evolve. Investors should consider video game industry stocks in their overall investment strategy. These ten stocks are a great way to diversify portfolios and bolster a long-term growth plan.
Daria Uhlig contributed to the reporting for this article.
The information is correct as of October 7, 2022.
Editor’s Note: This content is not provided by any entity covered in this article. Any opinions, analysis, reviews, ratings, or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed, or otherwise endorsed by any entity named in this article.
This article originally appeared on GOBankingRates.com: 10 Best Gaming Stocks to Buy in 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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