Video game stocks have crushed it over the last twelve months.
In 2020’s third quarter alone, research company NPD Group reported that the U.S. saw record-breaking numbers. The video game industry reached $11.2 billion in total consumer spending between July and September. That’s 24% higher than 2019’s third quarter.
Driving this insane increase in sales are games such as Activision’s (NASDAQ: ATVI) Call of Duty series, Nintendo’s (OTCMKTS: NTDOY) Animal Crossing: New Horizons, Epic Games’ Fortnite, and more…
While part of what is bolstering the industry’s momentum is the revolving door of global lockdowns and restrictions, this isn’t a trend that’ll fizzle out…
This is especially true now that Microsoft (NASDAQ: MSFT) and competitor Sony (NYSE: SNE) have released their ‘next-gen’ consoles – the Xbox Series X and the PlayStation 5. These systems have been met with an overwhelming amount of demand, selling out instantly online and in-stores each time new consoles have been restocked.
Right now, the U.S. video game market is worth $60.4 billion, according to data analytics company Statista. Grandview Research says the industry’s global value is around $151 billion. And with the continued release of new hit games, console sales, and more, the industry will rapidly grow…
In fact, Grandview forecasts the video game market’s value will surge by 93% to $291.16 billion over the next seven years.
That’s exactly why I’m bringing you one of the best video game stocks in the business. It not only has a strong market position but is also continuing to grow its portfolio of video games for the long-term.
One of the Most Dominant Video Game Stocks to Watch Now
Averaging $5.5 billion in revenue per year, Electronic Arts (NASDAQ: EA) is one of the largest video game publishers in the U.S.
EA is best known for its major sports franchises such as Madden and FIFA. However, it’s also the same publisher behind massive series like Battlefield, Mass Effect, and Star Wars.
In recent years, the company has begun to dabble in the free-to-play market as well. In 2019, EA released the critically acclaimed hit series Apex Legends. This game is a free-to-play battle royale similar to Fortnite.
During the initial launch phase for Apex Legends, over 50 million people played concurrently. Since then, the series has remained a massive success through a variety of free updates and in-game cosmetic microtransactions.
And, overall, the company continues to benefit from its ever-growing portfolio of video games…
In EA’s second quarter, the company reported earnings per share of $0.63 versus the anticipated EPS of $0.03.
The company’s net revenue was $1.68 billion and EA projects that revenue for full-year 2021 may soar to $5.63 billion.
COO and CFO Blake Jorgensen added that the results show that Apex Legends is on track to becoming a billion-dollar franchise, making it a pivotal series like Madden and FIFA.
The best part is, there are more tailwinds ahead that could send the stock higher in the coming year. Check out EA’s latest strategic moves announcement…
In mid-December, the company revealed it was buying British video game developer Codemasters for $1.2 billion. Codemasters is the company behind racing franchises like Dirt and Grid.
Meanwhile, EA has also partnered with Microsoft to include its games on Microsoft’s subscription-based Game Pass Ultimate service.
This signals that EA is continuing to make moves to not only support its existing intellectual properties, but also expand into new ventures and solidify its leading market position.
Google Just Poured $4 billion into THIS…
Sponsored
The world’s most successful tech industry giants are all clamoring to get their hands on a new piece of technology.
It’s fresh out of a highly secretive lab in Boston, Massachusetts, and it’s poised to make early investors billions.
It’s NOT cannabis. It’s NOT bitcoin, or some other blockchain-related technology. It’s NOT 5G.
And as a matter of fact, it could be bigger than all of those. Because if history is any indicator, you could be looking down the barrel of 5,000% profits… or even more.
Companies all over the world are funneling as much money as they can into what Bill Gates calls, “the holy grail” of modern technology.
Take a look at some of the top contenders and their spending history:
But Google takes the cake by a landslide. They’ve poured more than $3.9 BILLION into this mind-blowing new tech that’s taking the world by storm.
Click here to see this brand new tech in action, and find out how it could make you 10… 20… even 50 times your money.
