In this article we discuss the top 5 best video game stocks to invest in now that are currently very attractive . If you want to read our comprehensive analysis about these companies, go directly to the 12 Best Video Game Stocks to Invest in Now.
5. Electronic Arts Inc. (NASDAQ: EA)
Electronic Arts Inc. (NASDAQ: EA) is a leader in the digital interactive entertainment industry and mainly specializes in the development and distribution of content, games, and online services for internet connected mobile devices, consoles, and personal computers. It ranks 5th in our list of 12 best video game stocks to invest in now.
The company recently announced that the next-generation golf game EA Sports PGA Tour is currently under development on its Frostbite engine. The game is a product of a partnership between EA SPORTS and the PGA TOUR and is in line with EA Sport’s strategy to expand its video game portfolio and venture into new territories with a new golf title. The new title will EA Sports’ first golf game since 2015. Before then, Electronic Arts Inc. had a 15-year partnership with Tiger Woods which ended in 2013.
4. Bilibili Inc. (NASDAQ: BILI)
Bilibili Inc. (NASDAQ: BILI) started as a content production community inspired by anime, comics, and games (ACG) before growing and evolving into a full-spectrum video community with established businesses in the various sub-sectors like entertainment, games, and anime among others. The company reported $588.5 million in total net revenue in Q4 2020, representing a 91% increase YoY. Average monthly active users (MAUs) and mobile MAUs reached an all-time high of 202.0 million and 186.5 million, representing a 55% and 61% increase, respectively, compared to the same period in 2019. Bilibili reported a 103% increase in average monthly paying users (MPUs1) to 17.9 million during the quarter.
Media reported earlier that the company intends to acquire a 24% stake in Yoozoo Games, the developer Game of Thrones: Winter is Coming title. Talks for the $475 million deal are said to be at an advanced stage.
Thanks to the positive results reported, Bilibili Inc. has seen its ratings by equity research analyst go up, with Credit Suisse Group upgrading from a “Neutral” rating to an “Outperform” rating. The brokerage also gave the stock a price target of $140.00.
3. Activision Blizzard, Inc. (NASDAQ: ATVI)
Activision Blizzard, Inc. (NASDAQ: ATVI) is a U.S-based video gaming company worth investing in. The company came into being in July 2018 following the merger of Activision, Inc. and Vivendi Games.
The company reported better-than-projected results for the Q4 2020 and FY 2020. Activision Blizzard reported $2,413 million in GAAP net revenue in Q4 2020 compared to $1,986 million reported in Q4 2019. With the improved results and a projected bullish 2021, the company receives an improved rating from analysts. Stifel has upped its price target for Activision Blizzard, Inc. (NASDAQ: ATVI) stock by 27% to $119. According to Stifel, among the company’s games that did well in Q1’21 include Candy Crush Saga, World of Warcraft, and Call of Duty.
2. Sea Ltd (NYSE: SE)
Sea Ltd (NYSE: SE) is a consumer internet company specializing in the production of integrated platforms like electronic commerce, digital entertainment, and digital financial services. The company’s products are spread out in three businesses: SeaMoney, Shopee, and Garena.
The company has reported significant growth fueled by the pandemic and recently reported $1.56 billion in total revenue for Q1 2021, a 101% increase YoY. During the quarter, Sea Ltd (NYSE: SE) sales from Digital Entertainment grew by 72% to $693.4 million, while e-commerce sales were up by 178$ to $842.2 million. Total digital entertainment bookings amounted to $1 billion, an 111% YoY increase. The company also reported a 72% growth in active users compared to the last year’s Q1. Active paying users amounted to 73.1 million representing a more than 120% growth compared to what was reported in the first quarter of 2020..
Banking on the positive results reported, Sea is projecting a bullish year ahead with Digital Entertainment bookings expected to grow to between $4.3-$4.5 billion while c-commerce GAAP revenue is projected to range between $4.5-4.7 billion.
1. NetEase, Inc. (NASDAQ: NTES)
NetEase, Inc. (NASDAQ: NTES), a technology company in China, provides premium online services to advance its content, communication, and commerce. It operates some of the popular video games.
NetEase Q4 2020 Non-GAAP EPS of $0.36 was reduced by $0.09, while GAAP EPS of $0.22 was decreased by $0.08. Revenue of 43.03 billion (+26% YoY) saw a decline of $20 million.
In February, NetEase, Inc. approved a $0.06/ADs quarterly dividend, a 69.2% reduction from the previous dividend of $0.20. In 2020 the annual dividend was $0.784/ADS. In the second round of 2019, NetEase had set quarterly dividends at 20% – 30% of the company’s expected net income after tax in each fiscal quarter.
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