Shares In Gambling Companies
Related: 3 Breakout Stocks Trending Higher. Imagine an online player sitting at a computer gambling and then all of a sudden being served up special hotel and trip deals right into their inbox. This statistic shows the largest casino companies by revenue worldwide in 2018. The extremely successful Las Vegas Sands Corporation, parent-company of famous Las Vegas casino-resorts, The. Moreover, most of these stocks pay dividends to shareholders. Read more below to learn about the benefits and drawbacks of investing in gambling companies. You will also find three of the best stocks in the industry, as well as one to keep a close watch on going forward. Pros and Cons of Casino Stocks.
Video games aren’t just for pale, sweaty nerds these days—they’re played by people from all walks of life, and they’re being played more than ever before.
Not all gambling stocks are affordable, but GMBL stock can be part of your portfolio for less than $10 per share. That being said, it’s important to know that the 52-week range for GMBL stock is. The VanEck Vectors Gaming EFT - Get Report was down 4% to $39.95, and shares of major casino companies tumbled as the virus, which started in China, continues to spread.
Since the era of Pong and Atari, video games have risen from a tiny niche to one of the biggest sectors in the entertainment industry. Tech analytics company Digi-Capital estimates that global revenues from video game hardware and software could soar to $235 billion by 2022.
Naturally, these eye-popping figures also offer the opportunity for savvy investors to win big over the next several years. But what are the best gaming stocks to buy?
Are Gaming Stocks Worth Buying?
New Technology
Video games stand to benefit from technological developments like few other industries, making them a highly appealing option in the digital age.
Advances like virtual reality and augmented reality and better graphics cards allow users to fully immerse themselves in the game. Other new trends such as facial recognition, voice recognition, and gesture control provide a more interesting and interactive gaming experience.
Massive Growth Potential
With smartphones in billions of people’s hands around the world, everyone is a potential gamer. The rise of esports and video game streamers on platforms such as YouTube and Twitch show that people enjoy not only playing games, but watching and talking about them as well.
Video game companies that produce a captivating product can expect to win a loyal fan base, reaping additional revenue in the form of downloadable content (DLC), merchandise, expansion packs, and sequels.
Unpredictability
Like the film industry, the fate of a video game company often rises and falls on the success of its most recent releases—or even a single flagship product. Without the inside scoop on the development process, it’s sometimes difficult to ascertain how well a company’s next game will perform.
For example, Electronic Arts’ new video game Anthem hoped to capitalize on the popularity of recent multiplayer shooters such as Fortnite, Overwatch, and Apex Legends. However, since its release Anthem has mainly received middling and critical reviews, causing a significant setback for Electronic Arts [NASDAQ: EA].
Potential Regulation
The prospect of regulation constantly looms large over the video game industry. Chinese firm Tencent, the largest gaming company in the world, saw its shares plunge in August after China temporarily froze its approval process for new gaming licenses.
Even in the United States, there are recurring calls for regulation of violent imagery in video games, most recently by President Donald Trump.
There is also growing interest in regulating “microtransactions,” which are a business model that offers players advantages and better experiences in exchange for a small sum of money.
Is Activision Blizzard A Buy?
Activision Blizzard [NASDAQ: ATVI] hasn’t been having the greatest time lately. Although year-over-year revenues grew by 7% in 2018, the company’s stock also dropped by 26% in the same time period.
It’s little surprise, then, that the company laid off 800 employees in February, a full 8% of its workforce.
According to a report by Polygon, the Blizzard side of the business has no new major releases coming in 2019. The Activision side has also seen a slowdown, projecting fewer sales in 2019 than the previous year.
Despite the recent bad news, the restructuring at Activision Blizzard [NASDAQ: ATVI] may not be indicative of the company’s long-term outlook.
Most large enterprises in the video game industry go through similar events. However, would-be investors should certainly watch how engaged Activision Blizzard’s player base is with the company’s current and upcoming releases.
Should You Invest In Electronic Arts?
Electronic Arts [NASDAQ: EA] is another video game company that had a disappointing 2018, with shares cratering by 25%.
The recent flop of Anthem is another bad omen for the company, especially its BioWare division.
The good news for Electronic Arts [NASDAQ: EA], however, is that its recent Apex Legends title has been an unexpected smash hit, despite the lack of any announcement or marketing.
In the immediate future, Apex Legends should be able to pick up the slack where Anthem has failed. Reliable cash cows, such as the sports franchises FIFA and Madden NFL, should also keep the company on its feet.
NetEase: Buy or Sell?
For investors looking abroad, NetEase [NASDAQ: NTES] is an intriguing choice.
NetEase [NASDAQ: NTES] is a Chinese Internet technology company that operates versions of Blizzard Entertainment games such as World of Warcraft, StarCraft II, and Overwatch for the Chinese market.
The company also produces its own games, such as the Westward Journey series.
Like Tencent, NetEase was affected by China’s gaming license freeze in August, with shares diving by roughly 20%.
However, the company has missed several recent investor expectations, and needs to demonstrate solid results in the near future.
As a spot of good news, NetEase subsidiary Kaola is set to merge with Amazon’s Chinese import subsidiary in the near future.
The Best Gaming Stocks To Buy: The Bottom Line
Activision Blizzard [NASDAQ: ATVI] is currently going through a patch of instability, making it a risky investment prospect for conservative-minded investors.
EA stock has been rallying since the start of the year, and could be a good choice for a quick buck but there are long-term concerns about the company’s performance.
The prospects of NetEase stock are negatively affected by the recent license freeze and concerns about a general slowdown in the Chinese economy. Like its partner Activision Blizzard, NetEase remains a risky buy.
#1 Stock For The Next 7 Days
When Financhill publishes its #1 stock, listen up. After all, the #1 stock is the cream of the crop, even when markets crash.
Financhill just revealed its top stock for investors right now... so there's no better time to claim your slice of the pie.
See The #1 Stock Now >>The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.
Game stocks, like the number of Internet and mobiles users, are climbing their way to the top this year. Then practice what you've learned with our free stock market simulation.
VIDEO GAME STOCKS
Power up your portfolio with these popular video game stocks:
SymbolCompanyATVIACTIVISION BLIZZARD INCShares In Gambling Companies Uk
EAELECTRONIC ARTSGMEGAMESTOP CORP NEWGLUUGLU MOBILE INCZNGAZYNGA INCNTESNETEASE SHS SPONSORED AMERICAN DEPOSITARY RECEIPT …TTWOTAKE-TWO INTERACTIVE SOFTWARE INCNTDOYNINTENDO SHS UNSPONSORED AMERICAN DEPOSITARY RECEIPT …MSFTMICROSOFT CORPNVDANVIDIA CORPABOUT THE GAME STOCK MARKET?
Gaming offers both an interactive and a social experience to users. Games occupy more than 40% of mobile app usage (across both Androids and iPhones) and almost 70% of all tablet use. Players begin young and they don’t really stop playing as they age…which means a lot of gamers.
The gaming industry is flourishing with awesome growth potential. The rising number of Internet and mobiles users combined with fast moving tech ensures a growing number of prospective consumers. It was estimated by the Entertainment Software Association back in 2012 that the U.S. video game industry grew four times faster than the entire U.S. economy from 2009 through 2012. Going forward, worldwide game sales are very likely to soar by the billions.
OTHER GAME STOCKS
Here are some other game stocks:
SymbolCompanyJAKKJAKKS PACIFIC INCMATMATTEL INCSTOYSPIRAL TOYS INCShares In Gambling Companies Near Me
KIDBQKID BRANDS INCHASHASBRO INCDGDOLLAR GENERAL CORPORATIONInvesting in toy stocks is not all fun and games. The game manufacturing industry is evolving much quicker than ever before and technology has definitely changed the toy game.
TIPS FOR INVESTING IN GAMING STOCKS
Video games have come a long way. With the industry going digital and mobile gaming generating huge revenue, things are moving fast. Like, real fast. Here are a few important things to keep in mind when comparing companies:
What Products Are Coming Out, And On What Platform
Zynga, for example, relied on Facebook as their platform. What products are coming out and on what kind of platform are important questions to ask when considering a video game maker.
Recent stock performance
Stocks that have been going up in value may continue to do so, but investors can get carried away when looking at poor performing stocks. Usually, the stock will eventually rise to correct its price back to its “true value.”
Who's buying (or selling) the stock
“Sophisticated investors” (AKA hedge fund managers and mutual fund managers) are forced to report when they are buying and selling stocks. If they are buying, it’s probably for a good reason. Don’t go blindly copying their every move, though. It’s important to keep in mind that there’s usually a time lag between purchase and report.
MOTLEY FOOL ALERT HOT STOCK ALERT
*** 9:08 AM ET SEPTEMBER 1, 2020 ALERT: ZOOM VIDEO (TICKER:ZM is up $124 or 38% to $448 in early trading this morning due to a fantastic earnings release. ***DO YOU OWN ZOOM? I DO AND I BOUGHT IT 4 TIMES IN THE LAST 12 MONTHS--THANKS TO THE FOOL!
The Motley Fool has been hot on the stock for a year now recommending it July 3, 2019 when it was at $90; then again Oct 3, 2019 when it was at $76; then again during COVID on March 19, 2020 when it was at $123 and finally again on April 156, 2020 when it was at $150. So now it is at $448. THAT is exactly how they get their incredible returns year after year.
Learn more about the Motley Fool Stock Advisor service and how you can get their picks for just $19.
Read These Next
- 3 Peter Lynch Books That Will Inspire You
- Stock Market Bubbles
- Lively HSA Review