Over 2.6 billion people play video games on this planet. That’s around one third of the entire population. Given that the medium is still comparatively young, that means the gaming industry has seen absolutely explosive growth over the last 50 years.
This growth has been paired with the rise of behemoth video game companies and smaller independent studios alike. In the last ten years, many of these companies have gone public giving you the option to net some sweet gains from their continued growth.
Let’s take a look at some of the top companies you should consider if you are an investor.
Disclaimer
While this article tackles the topic of stocks and shares in the video games industry, it’s important to understand that this is not financial advice. Instead, we are merely signposting some of the top-performing assets in this class.
Before investing you should do your own research and come to your own conclusions as it will be your finances at risk on the stock market.
1. Nintendo Co. (NTDOY)
Perhaps the most recognised gaming company worldwide, Nintendo is a no-brainer for newcomers to the space. Being a company specialising in software and consoles, Nintendo brings in big bucks each and every year marking them as a reliable stock for newcomers.
In Q4 2021, they are also a good example of something you should be looking out for—an asset with a low 12-month trailing price-to-earning ratio (P/E). Because profits can be returned to stakeholders and shareholders, a low P/E essential means that you’re paying less for each dollar of profit generated.
2. SciPlay Corp. (SCPL)
Not a household name, but another low P/E candidate, SciPlay Corp is a developer of digital casino games for web and mobile which was recently acquire by Koukoi Game Oy. While this change of hands may make the asset more volatile, it is certainly a stock worth keeping an eye on or buying in early.
3. Activision Blizzard (ATVI)
One of the foremost developers of games in the US, Activision Blizzard is the behemoth of a publisher comprised of Activision, known for Call of Duty among many other franchises, and Blizzard, known for World of Warcraft, Overwatch and more. A recent hit to Activision Blizzard’s reputation in the case of a sexual harassment scandal has taken a hit on their stock price, but the strength of the game company suggests that they are incredibly unlikely to be taken down by such a case.
Meaning that currently the ATVI stock may be one that is too good to miss.
4. Capcom (CCOEF)
Holders of some of gaming’s most iconic franchises, from Resident Evil and Monster Hunter to Mega Man and Street Fighter, Capcom is a keystone in Japan’s video game industry.
The company pays a dividend and aims to return roughly 30% of its annual profits to shareholders. And thanks to their stalwart management, Capcom always prioritizes returning cash to its shareholders.
5. Take-Two Interactive (TTWO)
Leading publisher of legendary developers 2K and Rockstar Games, among many others, Take-Two Interactive is one of those forces in video games which work slightly behind the scenes. But with some of gaming’s most well-respected franchises under its belt there is no questioning the value of them as a company. Something clear in their place among the S&P 500.
Thus, Take-Two Interactive are a great addition to any gaming portfolio. And, thanks to their long lucrative history spanning back to 1993, they may well bring in some long-term returns.
6. Electronic Arts (EA)
Founded in 1982, EA has always been at the forefront of American gaming, producing, developing and distributing some huge franchises and standalone titles alike. From sports staples like Madden NFL and FIFA to The Sims and more modern titles like Apex Legends and Battlefield EA is a name that is known by gamers of any age.
Not only that but with their recent acquisition of Glu Mobile, they promise to push into the mobile space, perhaps opening up for a whole lot of new growth.
7. Zynga (ZNGA)
If you’ve ever played a mobile game, or a game on Facebook, chances are you’ve heard of Zynga. This seemingly innocent producer of mobile games managed to take the cake with their core franchises which now span countless genres and are available on pretty much any device—from your high-performance PC to your mid 2010s phone.
Continuing to create hits while purchasing other studios, Zynga is here to stay. And as Mobile gaming continues to eat up more of the market share, they should certainly be on your radar.
8. Roblox (RBLX)
Part game, part game maker, part social app Roblox has left its mark on contemporary culture by drawing in millions of daily users—figures currently sit at around 43.2 million daily users.
After going public last year, the price of Roblox stocks surged and the company does face some challenges in a post-pandemic world (whenever that finally emerges).
This means that although Roblox has seen some impressive gains, and may well continue skywards, it’s worth considering the potential downside risk. Yet, given that Roblox is a totally self-sufficient ecosystem for creating, sharing, playing and socialising, it may well continue to perform well.
9. Unity Software (U)
Unity Software produces one of the most utilised and most accessible game engines in the world. Powering over half of the world’s video games, it’s hard to understate the value Unity brings to the very foundations of the video game industry by facilitating the very existence of games.
Because of this, Unity has seen its growth far exceed that of the games industry as a whole, with its revenue rising by a whopping 43% in 2020, and forecasts predicting at least a 35% increase in 2021.
Of course, such growth has boosted up Unity’s stock price since last year, but with more growth on the horizon such a price hike may still bare significant fruit.
10. Enthusiast Gaming (EGLX)
Esports is the competitive scene of the future, today. Already seeing incredibly growth, esports as a whole has brought in strong profits for organisers, teams and other organisations that manage elements of the ecosystem.
Enthusiast Gaming is the world’s largest platform for gaming and esports fans, bringing together talent, media-making, esports events and more under one roof. What’s more, the company continues to branch out acquiring competitors worldwide.
Being an early adopter may provide a big pay off in the end, with Enthusiast Gaming’s stock being one of a handful of esports stocks available to the public.
Video games and stocks make a formidable pair given the industry’s continual growth in recent history. Making now the perfect time to add some gaming stocks to your portfolio.
Once you’ve made the decision to beef up your portfolio with some gaming stocks, reward yourself by hopping back into your favourite game with a boost from Eldorado.gg, the hub that helps you to get ahead in gaming.
Disclosure: The opinions expressed in this article are provided by a third party. The author didn’t disclose any positions in any of the stocks mentioned in the article. Insider Monkey received compensation in exchange for publishing this article. Insider Monkey doesn’t recommend purchase/sale of any securities, cryptocurrencies, or ICOs. Please get in touch with a financial professional before making any financial decisions. You understand that Insider Monkey doesn’t accept any responsibility and you will be using the information presented here at your own risk. You acknowledge that this disclaimer is a simplified version of our Terms of Use, and by accessing or using our site, you agree to be bound by all of its terms and conditions. If at any time you find these terms and conditions unacceptable, you must immediately leave the Site and cease all use of the Site.
