It is a surprise to nobody that video game stocks have been performing well throughout 2020. This is because many people have been staying inside more than ever, and thus playing more video games. Top video game stocks have been able to avoid many of the negative economic effects that many other sectors have experienced. Video games are considered a part of the digital company niche. Meaning it is included when talking about cloud services, e-commerce, and more.
Companies in the video game sector that have been able to perform well include Activision Blizzard (ATVI Stock Report) and Take-Two Interactive (TTWO Stock Report). The video game industry is booming right now, and with new generations of consoles and graphics cards being released at the end of this year, there is no stop insight. Some video game companies are struggling at the same time. Games are being delayed by developers that are unable to complete them due to pandemic caused issues. One of these recently delayed games is Far Cry 6, the next installment of the popular “Far Cry” series.
The company behind the game delayed it along with another game, to potentially as far as 2021. So it can be unclear at times which video game company is the best to invest in if you want to put money into the sector. Let’s look at three video game stocks that have been high performers throughout the 2020 year.
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The first company on this list of the top video game stocks to watch this holiday season is Electronic Arts Inc. (EA Stock Report). Electronic Arts are currently one of the world’s largest video game publishers. It has grown to now be the largest video game related company in the United States by revenue and market cap. Some of the games that it produces include Need For Speed, EA Sports, Battlefield, Star Wars, and much more. So let’s look at what this large video game corporation has been up to in recent times.
The company reported first-quarter FY 2021 financial results back in September. Its net revenue was $1.46 billion which beat analyst estimates by a large margin. Its earnings per share were also much higher for investors. All of which have resulted in EA stock price going up. The company announced that its second quarter fiscal year 2021 results will be released on November 5th, just two days after this article. This has caused EA stock price to be up ahead of earnings.
Analysts predict that EA had another great quarter, which could potentially bring its stock price up. The conference call and press release will detail its business performance and financial performance. That is why Electronic Arts Inc. is on this list of the top video game stocks to watch this holiday season. It will be interesting to see what effect EA stock has after these financial results are released. As a leader of the industry, it may affect other video game stocks as well.Top Video Game Stocks To Watch In November 2020: Glu Mobile Inc.
Next up on this list of the top video game stocks to watch this holiday season is Glu Mobile Inc. (GLUU Stock Report). Glu Mobile Inc. develops, publishes, and markets mobile video games. These free to play mobile games are primarily for users of smartphones and tablets. Its titles spand the genres of lifestyle, casual, mid-core, and sports as well. Its popular games include QuizUp, Cooking Dash, Deer Hunter, and many more. It markets sells and distributes its games on services like the Apple App Store, Google Play Store, among others. It has also created games for celebrities such as Kim Kardashian and Gordon Ramsey. Let’s check out how Glu Mobile has been performing throughout 2020.
Well, as a video game company in 2020 GLUU stock has been able to perform rather well. The company reported its financial results back in August. This included revenue being up 40% year over year, bookings growing 79% year over year, and many of its games increasing bookings to as much as 320%. As one of the leading global developers of mobile games, it was expected that the company would do well. Mobile phone usage is up drastically this year as a result of the coronavirus pandemic that has still not gone away.
So now investors of GLUU stock are looking towards when the company will release its next financial results. The company announced that these results will come on November 5th, along with some other video game stocks. It will be interesting to see how the company performs in these results as it will certainly define the future of GLUU stock.Top Video Game Stocks To Watch In November 2020: Zynga Inc.
The final company on this list of the top video game stocks to watch this holiday season is Zynga Inc. (ZNGA Stock Report). Zynga Inc. is a mobile video game company that creates social video games. It makes video games to market on services such as Facebook, Apple App Store, and the Google Play Store. Some of the games under its umbrella include CSR Racing, Words With Friends, and FarmVille. The company also recently acquired Peak, a Turkish game developer, for more than $1.8 billion USD. Let’s look at some more recent information that has come out from this large video game developer.
Back in its second-quarter results, it achieved its highest quarterly revenue and bookings in more than 8 years. Its revenue was up 47% and its bookings were up 38% year over year. This is a result of increased video game usage throughout the pandemic in 2020. These are record high increases for the company. It also received record online game revenue of $388 million, up 61% from the previous year.
Today, November 4th, the company will be releasing its third-quarter 2020 results. It expects third-quarter revenue to grow $445 million, up more than 29% year over year. It will be interesting to see what the company reports when it is finally released. That is why it has made this list of the top video game stocks to watch.