Video games are a huge source of entertainment for millions of people. The video game industry has evolved over the past several decades, with innovative games that cater to people of many different demographics. We’ve rounded up the best video game stocks to buy right now to bolster your investment portfolio.
With COVID-19 continuing to cause shutdowns around the world, now is a great time to invest in video game companies. People are spending more time at home playing video games, and they’re exploring different kinds of games that they might not otherwise have found.
Innovations in the video game industry also bode well for strong future performance. AI and virtual reality technology is changing the way that people play games, making them more immersive and more accessible. The esports market is also building a large global fan base that has the potential for huge revenue.
With so much growth and innovation on the horizon, now is a great time to invest in video game stocks. Here are the ones we recommend to add to your portfolio.
Best Video Game Stocks To Buy
Electronic Arts (NASDAQ: EA)
Electronic Arts is an American video game company based in California. They got their start making computer games in the 1980s, but today, they make titles for a broad range of devices, such as PlayStation, Xbox, and Nintendo Switch. They even have mobile game titles on their roster.
Electronic Arts makes some of the top video game franchises in the world, including Need For Speed, The Sims, Titanfall, and Battlefield. They are also known for their sports franchise games, including FIFA and Madden NFL. EA’s core franchises appeal to very broad audiences, which has kept them successful for a very long time.
Electronic Arts stock has been performing well this year as consumers have been staying home and enjoying new video games. They’ve been able to keep their cash flow up during the pandemic.
Their stock price dipped in the beginning of November as Wall Street experts predicted that third-quarter results could be lackluster. However, the stock resumed its upward trend when EA reported that they had beat Wall Street expectations. Since Electronic Arts has a long history of success in the video game industry, they’re a top stock to buy for the long term.
Activision Blizzard (NASDAQ: ATVI)
Activision Blizzard is another top gaming company making moves on the stock market. This company is known for the Call of Duty franchise, as well as other popular titles like World of Warcraft, Overwatch, Diablo, Guitar Hero, Candy Crush, Crash Bandicoot, and more.
The release of a new Call of Duty game alone can generate a huge amount of revenue for Activision Blizzard Their other core franchises supplement their financial success. Activision is now the largest game company in the world in terms of revenue.
Activision has mastered the art of a successful franchise, so it’s unlikely that their business will slow down anytime soon. Like many other gaming companies, their stock has been quite successful this year even as the market struggled.
Activision succeeded in their quarter three earnings report, beating market expectations with strong sales. They’ve proven that they can succeed on a variety of gaming platforms, including mobile. Their stock value may fluctuate as demand changes with the pandemic, but it’s unlikely that this powerhouse will slow down anytime soon.
Take Two Interactive (NASDAQ: TTWO)
Take Two Interactive is another game developer that’s on the way up this year. Data indicates they could be undervalued at the moment, which means that now could be a great time to buy.
Take Two Interactive runs two gaming studios and has produced some of the most sought-after content of the past few years. Some of their most exciting titles include Red Dead Redemption, NBA 2K, and Grand Theft Auto. NBA 2K recently launched an international esports league.
Many market experts list Take Two Interactive as one of the top growth stocks to buy right now in the gaming industry. Their stock has outperformed many of their competitors, and their year over year revenue growth has been very strong.
Due to COVID-19, many people are spending more time at home with their favorite video games. Take Two Interactive has mastered the art of monetizing existing series to continue generating revenue – without having to constantly churn out new titles.
Best Gaming Stocks To Buy
Tencent Holdings (OTC: TCEHY)
Tencent Holdings is a Chinese conglomerate that owns companies in a variety of industries. They’re notable in the video game industry because they have a very large gaming department known for their massively multiplayer online games, including League of Legends.
Tencent Holdings differs from some of the other video game stocks on this list because their revenue stream is very diverse. They also own WeChat, one of the most popular Chinese messaging apps. It’s one of the largest holding companies in the world with a very stable portfolio.
Tencent stock has been on the rise this year, but it may still be undervalued relative to its growth. Now is a good time to invest in Tencent, while they are still fairly priced and on a strong upward trajectory.
Capcom (OTC: CCOEF)
Capcom is one of many successful Japanese video game stocks worth a look at right now. Some of Capcom’s franchises include Resident Evil, Mega Man, Street Fighter, and Monster Hunter – all successful titles with room to continue building momentum.
This company has been in the industry for decades and has a proven business model. Their stock is reasonably priced and performed well this year during the pandemic. They saw a small dip in pricing after a ransomware attack in November, but their numbers have already started to rebound.
Capcom has maintained good sales and revenue numbers this year as well. They are even predicting record high sales numbers for the beginning of 2021.
Best Video Game Console Stocks
Microsoft (NASDAQ: MSFT)
Microsoft is one of the world’s foremost computer technology companies. They’re involved in the video game industry in a few different ways, and have benefited from this year’s stay at home order.
The most exciting computer games on the market are designed for Microsoft PC devices. While there are other companies that make gaming computers, Microsoft has a decades-long foothold on this niche. They also produce XBox, one of the market’s most established consoles.
Many dedicated gamers consider Xbox a must-have console. Microsoft as a whole has performed well this year, with revenue exceeding industry expectations.
This company has a high price to earnings ratio, so some investors may find it too expensive. However, you shouldn’t count out this tech giant.
Not only are their video game consoles performing well, but they also have a successful line of personal computers and tablets, as well as software products. This is a great gaming and tech stock to buy for a long-term investment.
Sony (NYSE: SNE)
Sony is a Japanese electronics company known for the PlayStation console line. They’re also a game publisher in their own right. While they face stiff competition from XBox and Nintendo, PlayStation has led the console market in recent years.
Sony released the PlayStation 5 in November 2020 to huge fanfare from the gaming community. This innovative new device has many exciting immersive features that set it apart from the competition. It even integrates with virtual reality products.
Stores quickly found that they could not keep the PS5 in stock. The success of this device led to explosive growth in Sony’s stock value over the last few months. They’ve also consistently beat earnings expectations this last year.
Nintendo (OTC: NTDOY)
Nintendo is an iconic Japanese gaming company that made its way to global prominence in the 1980s. Since then, they’ve released a huge range of iconic franchises, including Mario, Super Smash Brothers, Legend of Zelda, Animal Crossing, and more.
In addition to their games and software, Nintendo is also known for their consoles. Their most recent console is the Nintendo Switch, which came out in 2017. This device is a portable gaming system that can also connect with a TV for home entertainment.
While Nintendo hasn’t seen the explosive growth of some of their competitors, they have been on a very steady upward trajectory since the release of the Switch. Their sales numbers this year were particularly impressive.
Nintendo also appeals to casual gamers, young kids, and other unique sectors of the market. Their games have a designated audience that is unlikely to stop paying attention anytime soon. This makes them a great investing opportunity for the future.
Best Video Game Stocks: Mobile Gaming
Apple (NASDAQ: AAPL)
Apple is a leading tech stock best known for products like the iPhone, iPad, and MacBook. They are a relatively diverse company with multiple revenue streams to rely on and a sound business model.
The iPhone is one of the most popular platforms for mobile gaming. The mobile game sector is poised to continue growing as consumers rely on their personal devices for all kinds of entertainment.
This is where Apple can carve out a niche in the game industry. The app store is home to a huge library of games of all genres, and captures an audience that might not typically be interested in gaming.
Last year, the company launched their Apple arcade subscription service, which includes access to exclusive mobile games. With Apple stocks’ consistently positive performance this year, investors should consider adding them to their portfolio.
Zynga (NASDAQ: ZNGA)
This is one of the most affordable video game stocks to buy right now, and they have huge potential. Zynga started off developing games for Facebook in the early aughts, but has recently moved into mobile games. They’ve kept their social media integration, but have expanded it to reach a wider audience.
Zynga has received a lot of attention from investors this year. This is because they have acquired other game software developers that have the potential to dramatically increase their revenue.
Some of Zynga’s most well-known games are Words With Friends and Farmville. While they have performed well this year, their stock did drop after they reported third quarter earnings. This is because their revenue didn’t quite meet investors’ lofty expectations.
With this dip in stock performance, now may be the right time to add Zynga to your portfolio. It’s a cheap buy that could have huge potential if they keep up their acquisition strategy.
Google (NASDAQ: GOOGL)
Google’s Android operating system is another very popular platform for mobile gaming. Through the Google Play store, consumers can download new games from developers around the world.
Android has a larger global reach than Apple, and has a broader range of games available. However, these global users have historically been less willing to spend money on mobile games. In recent years, Google has been working to change that through in-app purchases.
Investors may experience some stick shock with Google’s price point right now. However, their third quarter data was strong, with a rebound in revenue and particularly strong performance from their video game ventures.
Can you invest in video games?
There are so great video game stocks that you can invest in. To invest in gaming companies, you’ll need to set up an investment account.
One of the best ways to do this is through Webull. Webull is a user-friendly investment platform that gives you free stocks just for signing up. You can sign up for Webull here.
Best Video Game Stocks: Final Thoughts
Consumers have been relying on video games for entertainment now more than ever with the pandemic raging on. While many other industries have struggled, video game stocks have consistently seen growth.
The world’s top video game companies are pushing the envelope with new technologies and innovative storylines. This is only the beginning for the video game industry, and now is a great time to invest in this exciting market.