Could these gaming stocks end the year on a high note?
4 Gaming Stocks To Know In The Stock Market This Week
For obvious reasons, many people have turned to the stock market for investment opportunities in recent years. And, at the top of that list would include gaming stocks. The global pandemic had a negative impact on many industries but the gaming sector is one of the few which benefited from the lockdown restrictions. As people turn to various types of indoor entertainment, gaming has been one of the popular options. That said, it should not come as a surprise that we are not seeing similar levels of growth now as the economy is reopening and people are starting to step outdoors more comfortably. So, the question is, can the gaming industry continue to grow?
Well, Amazon‘s (NASDAQ: AMZN) CEO Andy Jassy certainly is optimistic about the future of the industry. In fact, he believes that it could become the company’s biggest entertainment category one day. On another hand, we also saw Roblox‘s (NYSE: RBLX) stock soaring over 25% in pre-market trading today after it reported a strong third quarter earnings report. Its revenue more than doubled compared to the prior year’s quarter at $509.3 million. Despite users reverting back to their pre-pandemic routines, Roblox remains an integral part of their lives. All things considered, would you bet on the future of the gaming industry? If so, here are four gaming stocks to watch in the stock market today.
Gaming Stocks To Buy [Or Sell] This Week
- Electronic Arts Inc (NASDAQ: EA)
- Sea Limited (NYSE: SE)
- NVIDIA Corporation (NASDAQ: NVDA)
- Advanced Micro Devices, Inc (NASDAQ: AMD)
Electronic Arts
First, we will be looking at the digital interactive entertainment company, Electronic Arts. Essentially, it develops, markets, publishes and delivers games, and services that can be played by consumers. Some of the company’s notable games would be Apex Legends, The Sims, Battlefield, FIFA, and Madden NFL. That said, EA stock has been trading sideways over the past year, rising slightly more than 15% within the period.
In October, the company and FIFPRO announced an extension of their partnership. The renewed commitment supports EA SPORTS continuing investment in the future of football. Hence, enabling EA SPORTS to deliver the greatest and most authentic football experience to more than 150 million players globally.
Furthermore, EA also recently reported its second-quarter earnings report last week. This is the strongest second quarter in the history of the company. Net bookings for the trailing twelve months were $7.07 billion, representing an increase of 27% year-over-year. It is also worth noting that approximately 100 million players have engaged with its global football franchise across all platforms. With this in place, EA will be well-positioned for a strong holiday season ahead. So, would you consider adding EA stock to your watchlist?
Sea
Sea Limited is a leading global consumer internet company founded in Singapore. Its mission as a company is to better the lives of consumers and small businesses with the help of technology. For now, it operates through three core businesses across digital entertainment, e-commerce, as well as digital payments, and financial services. Impressively, SE stock has risen more than 75% since the start of the year.
Garena is the company’s gaming segment that provides global users access to popular and engaging games. Through its platform, gamers can socialize and build communities to have a better time. For those unfamiliar, Garena is the developer of Free Fire, a popular mobile battle royale game. This is the most downloaded mobile game globally in 2019 and 2020. And it is the profitable gaming division that played a role in helping to fund the growth of Sea’s e-commerce arm.
Financially, Sea has also been trending in the right direction. For its second quarter, its GAAP revenue was $2.3 billion, an increase of 158.6% year-over-year. Meanwhile, it posted a gross profit of $930.9 million, representing an increase of a staggering 363.5% year-over-year. So, would you consider buying SE stock ahead of its third-quarter earnings report on November 16?
NVIDIA
Another top name in the gaming and tech space as a whole right now would be NVIDIA. In detail, the company is the world’s top producer of discrete graphics processing units (GPUs). Its products are used by the gaming and professional markets. Last month, the company announced its next-generation cloud gaming platform that will be available exclusively in a new, high-performance membership tier. The GeForce NOW RTX 3080 membership tier will provide gamers with access to the greatest-ever generational leap in GeForce history. How is this so? Well, it will deliver the highest resolutions and fastest frame rates, paired with the lowest latency.
Despite its success over the years, NVIDIA continues to innovate and push its boundaries. Earlier today, lidar company Luminar Technologies (NASDAQ: LAZR) announced that its lidar solution has been selected to be part of the sensor suite in the NVIDIA DRIVE Hyperion autonomous vehicle platform. In detail, DRIVE Hyperion will utilize one forward-facing long-range Luminar Iris lidar in its Level 3 highway driving configuration. This will enable next-generation safety as well as accelerate the development of autonomous driving.
Keen investors should be aware that NVIDIA will be announcing its earnings on November 17. Back in its second quarter, the company reported a record revenue of $6.51 billion, representing an increase of 68% compared to the prior year’s quarter. Out of which, $3.06 billion were Gaming revenues, up 85% year-over-year. So, do you think NVIDIA will be able to keep up its impressive performance thus far? If so, would you consider investing in NVDA stock?
Advanced Micro Devices
To sum up the list, we have the global semiconductor company that has been making waves lately, Advanced Micro Devices (AMD). Its products include x86 microprocessors, discrete GPUs, and chipsets for personal computer, gaming, datacenter and markets. If you have been following the company, you would’ve noticed that AMD stock has risen more than 40% just within the past month.
Its latest rally came after AMD’s announcement that it had won business from Facebook’s parent company, Meta Platforms. (NASDAQ: FB). The chip giant said its EPYC chips were selected to help power Meta’s data centers. As we navigate through a high-performance computing megacycle, AMD’s products and services continue to be in demand.
Not to mention, the company also announced last week a new cloud gaming GPU called the Radeon Pro V620. However, the V620 is not limited to gaming use. It comes with partitioning capabilities that allow streaming multiple workspaces from the cloud simultaneously. All things considered, is AMD stock a top gaming stock to buy in the stock market today?
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Originally posted on November 9, 2021 – 4 Trending Gaming Stocks To Watch In November 2021
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