Niche investment opportunities are becoming more popular as investing is more widely accessible to the average person. Investors are increasingly interested in familiar brands that offer a sense of nostalgia or excitement. For investors interested in the gaming industry, which gaming stocks are worth investing in?
Read: Looking to diversify in a bear market? Consider These 6 Alternative Investments
Top 10 Gaming Stocks To Buy Right Now In 2022
All figures in the table below are based on data collected on October 7, 2022 from Nasdaq.com.
|game stock||Share the value||One year target||Share volume|
|Electronic Arts (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|
|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 Arts (EA)
EA, with its hugely popular EA Sports subdivision, derives most 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 that have lower quality scores. It recently ranked at the 75th percentile for asset return and 86th for redemption return.
2. Take-Two Interactive Software (TTWO)
This company represents two popular game brands – Rockstar Games and 2K. Grand Theft Auto and NBA 2K are two popular games that many people may recognize. It said revenue for the first quarter of 2023 rose 36% from a year earlier to $1.1 billion.
The Japanese company Nintendo Co. Ltd. manufactures video game platforms, card games, home and handheld consoles and software. One of the most well-known and established gaming brands, Nintendo has come under fire recently due to lackluster sales and delays in new releases, but things seem to be looking up.
A recent 10-to-1 stock split sent the stock price plummeting, which could attract new investors, especially younger ones who grew up glued to Nintendo games. And the company has had recent successes, such as record domestic — Japanese — sales of its Splatoon 3, CNBC reported.
4. Activision Blizzard (ATVI)
As one of the largest video game brands in the world, Activision offers video game brands such as:
- Call of Duty
- candy Crush
- World of Warcraft
Experts predict share value growth of nearly 30% over the coming year for Activision. One of the reasons for these estimates is that Activision plans to innovate in video games to generate new revenue streams for the company.
5. Tencent (TCEHY)
It is the largest video game stock in the world by revenue. The brand is strong because it owns an impressive number of shares in other video game companies. An increase in the popularity of mobile games in China is driving demand for Tencent-branded games. The company’s turnover is following a trend with a growth of around 20% expected over the next few years.
6. SciPlay (SCPL)
This brand is known for its online casino type games. It reported strong results in the first half of its 2023 fiscal year. One of the benefits of SciPlay is that the company ended 2021 with little debt and $364.4 million in cash.
7.Nvidia Corp. (NVDA)
Nvidia innovates in the powerful graphics cards necessary for the best performance in video games. Many esports leagues and streaming influencers consider Nvidia to be their go-to brand for graphics cards.
In the second quarter of 2022, Nvidia saw a 33% decline in revenue in the gaming segment as pandemic-era demand shifts and retailers reduce inventory to make room for new products. Going forward, the company expects the decline to be partially offset by growth in its data center and automotive segments.
8.Microsoft Corp. (MSFT)
Microsoft is well known for its business software and cloud services. Microsoft is a household name. But many people don’t know that it’s also a major player in the gaming industry. In its Q2 2022 earnings report, the company announced a 10% increase in Xbox content and services revenue. compared to the second quarter of 2021. Ongoing product launches and new licensing partnerships indicate that revenues continue on an upward trend.
9. Alphabet Inc. (GOOG, GOOGL)
Alphabet is the umbrella company of Google and YouTube, and not only the most profitable games company on this list, but the third most profitable in the world, according to Fortune. Many people may not connect 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 $7.34 billion in revenue in the second quarter of 2022, up nearly 5% from a year ago.
10.Sea Ltd. (SE)
Sea Ltd. is an umbrella company of three brands: Garena, Shopee and SeaMoney. One of these segments enjoys an impressive presence in Latin America, Taiwan and Southeast Asia. Garena creates online games for mobile devices and personal computers.
In the second quarter of 2022, Sea Ltd. reported a 29% increase in revenue and 17.1% increase in total gross margin year-over-year. Although the company is not yet profitable, it has long-term promise and analysts consider it a solid buy.
How to buy gambling stocks
The easiest way to buy gaming stocks is to open a brokerage account from which to place your trades. With an online brokerage like Fidelity, you can place your own orders or, for a fee, let the broker place orders for you. You can also use an investing app like Robinhood or Webull to place your own orders. Here’s what to do once you’ve selected a broker or app.
To buy game shares
- Opening an account. You will need to 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 shares, you will need to transfer money to your brokerage account. You can usually do this by linking a checking account to your investment account.
- Select the stocks in which to invest. Online brokers and investing apps often have research tools you can use to learn more about the companies you’re considering investing in. Additionally, you can find a wealth of financial information in the “Investors” section of company websites. This is where they post income reports and other financial documents.
- Order. Find the stock you want to buy on the brokerage website or app, then click the “Trade” button. Enter the number of shares — or, if buying a fractional share, enter the dollar amount you want to invest. Then check out and submit your order.
The video game sector is booming with growth predicted for the coming years as new technologies drive the industry to further develop. Investors should consider video game industry stocks as part of their overall investment strategy. These ten stocks are a great way to diversify portfolios and bolster a long-term growth plan.
Daria Uhlig contributed reporting for this article.
Information is accurate as of October 7, 2022.
Editorial note: This content is not provided by any entity covered by this article. Any opinions, analyses, criticisms, evaluations, 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.
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