Pay close attention to the global video game market. For one, according to analysts at Newzoo, the global gaming market could generate up to $187.7 billion just this year. They also say the global payer count – those who spend money on gaming – could increase 7% to 1.47 billion. Two, highly anticipated titles have been released this year from some of the best gaming stocks, including Final Fantasy 16, Spider-Man 2, and Super Mario Bros. Wonder.
Even more are expected to hit the shelves in 2024. Plus, in the next year or two, one of the most hotly anticipated games – Grand Theft Auto VI – will be released. That being said, investors may want to consider buying gaming stocks such as:
Take-Two Interactive (TTWO)
One of the best-performing video game stocks of the year has been Take-Two Interactive (NASDAQ:TTWO). All of this is thanks to earnings and speculation that we will soon see the release of Grand Theft Auto VI – one of the best-selling, hotly anticipated titles.
Since releasing the first Grand Theft Auto title in Nov. 1997 through Grand Theft Auto V in Sept. 2013, the franchise has sold 400 million units. The fifth installment alone has sold 180 million units since its release, making it the best-selling game in the United States in the last 10 years. Better, when the next game is released, it could do even better. This is leading to higher highs in the Take-Two Interactive stock.
Helping, CEO Strauss Zelnick hinted at a possible release date for Grand Theft Auto VI. “We leave the announcement of upcoming titles to our labels and we have said we have a very robust pipeline of titles and we have a great outlook for fiscal 2025 where we’ve reiterated our belief that we’ll generate about $8 billion in net bookings,” he said, as quoted by HypeBeast.
That answer is the best hint yet on the potential release date. That’s because Grand Theft Auto is one of the very few TTWO games that can generate sales anywhere near $8 billion.
Electronic Arts (EA)
There’s also Electronic Arts (NASDAQ:EA), which has become technically oversold on relative strength, MACD, and Williams’ %R. From its current price of $120.54, I’d like to see it refill its bearish gap around $135 initially. While the stock dipped on disappointing bookings – which missed expectations by $10 million – it’s a buying opportunity.
For one, bookings were still up 21% year over year thanks to the release of Star Wars Jedi: Survivor. Two, the company is set to release even more hotly anticipated game titles, which should boost net bookings. Finally, the company raised its forecasts. It now expects to see second-quarter revenues of $1.82 billion to $1.92 billion, and for EPS to come in between $1.7 billion and $1.8 billion, which are higher than the prior quarter.
Electronic Arts also just declared a quarterly cash dividend of $0.19 per share. It’s payable on Sept. 20 to shareholders of record as of Aug. 30. Again, with a good deal of weakness priced into the EA stock, it’s a buying opportunity.
Roundhill Video Games ETF (NERD)
Or, if you just want to diversify among most of the top video game stocks at a low cost, there’s always an ETF. With an expense ratio of 0.50%, the Roundhill Video Games ETF (NYSEARCA:NERD) offers exposure to 37 video game stocks in an industry that could be worth $211 billion by 2025. Some of its top holdings include Nintendo (OTCMKTS:NTDOY), Electronic Arts, Take-Two Interactive, Roblox Corp. (NYSE:RBLX), Unity Software (NYSE:U), and Konami Group (OTCMKTS:KONMY) to name a few.
After running from about $14 to $16.40, the ETF did pull back to about $14.76 recently. However, with solid video game release dates nearing, I’d like to see the NERD ETF closer to $18 a share. This stock and the rest of the ones we mentioned are all among the best gaming stocks out there.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
