We recently compiled a list of the 10 Best Gaming Stocks to Invest In According to Billionaires. In this article, we are going to take a look at where Sea Limited (NYSE:SE) stands against the other gaming stocks.
The gaming industry has experienced significant changes over the past few years. During the COVID-19 pandemic, the sector saw remarkable growth as more people spent time indoors. However, this momentum did not continue after restrictions eased, which led to lower consumer spending on games and consoles. Economic uncertainties and challenges like inflation further impacted the industry, resulting in layoffs, studio closures, and project cancellations across the industry in 2024. Despite these setbacks, analysts are optimistic about a recovery supported by upcoming major releases.
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According to research firm Newzoo, video game consoles are expected to be the biggest growth driver in the market until 2027. The anticipated launches of GTA VI in fall 2025 and the new Switch console in summer 2025 are seen as key factors fueling a rebound. GTA V, the predecessor to GTA VI, is one of the most profitable games ever and has sold over 210 million by December 2024. Analysts believe new releases will encourage players to spend more on consoles and games. This could potentially reverse the industry’s recent slowdown.
According to the report by Newzoo, console software revenue is projected to increase 7% from 2024 to 2027 and outperform PC software revenue growth of 2.6%. By 2027, console revenue is expected to account for over 56% of the total PC and console software revenue of $92.7 billion. Total playtime increased by 6% in 2024 and Q4 saw the highest quarterly playtime thanks to blockbuster releases like the new Call of Duty title.
Emmanuel Rosier, director of market analysis at Newzoo, told Reuters that major console titles, such as Spider-Man and God of War, are driving engagement on consoles. He also pointed out that these AAA or AAAA releases have less impact on PC gamers, who prefer older titles.
Methodology
To compile our list of the 10 best gaming stocks to invest in according to billionaires, we looked for the largest gaming companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gaming stocks. Next, we focused on the top 10 gaming stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best gaming stocks to invest in were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up view of hands holding a modern gaming device, highlighting the company’s mobile games.
Sea Limited (NYSE:SE)
Number of Billionaire Investors: 17
Number of Hedge Fund Holders: 86
Sea Limited (NYSE:SE) is a major technology corporation headquartered in Singapore. The company is a major player in the gaming and esports industry through Garena, its gaming division. Sea Limited (NYSE:SE) was initially founded as a game development and publishing company and it is best known for its popular Free Fire title, one of the best mobile battle royale games. The company also operates core businesses across e-commerce and digital financial services through Shopee and SeaMoney. Through its Garena segment, the company develops and publishes games and also organizes professional gaming tournaments. Sea Limited (NYSE:SE) ranks among the best gaming stocks to buy.
The company is focused on scaling its user base and enhancing content offerings for its gaming division, Garena. Sea Limited (NYSE:SE) reported that 2024 was a successful year for Garena, particularly with Free Fire’s remarkable comeback. The game’s annual bookings increased by 34% year-over-year. Free Fire also became the world’s largest mobile game by average daily active users (DAUs) and the most downloaded title, according to Sensor Tower. In 2024, Average DAUs grew 28% year-over-year and surpassed 100 million. The game delivered strong engagement and retention even in its eighth year. Sea Limited (NYSE:SE) sees Free Fire as an evergreen franchise and expects Garena to deliver double-digit growth in both its user base and bookings in 2025.
Overall, SE ranks 4th on our list of the best gaming stocks to invest in according to billionaires. While we acknowledge the potential of SE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
