The gaming industry is booming and investors should be taking notice

by | 22 Feb, 2018

Activision’s Call of Duty WW2 was the third highest selling game in the U.S. in January cross-platform

Demand for video games across the globe is increasing rapidly, and this can only be good news for stocks like Activision Blizzard, Electronic Arts and other high end game publishers.

According to the industry-tracking firm NPD Group, revenues for the gaming industry were up 59 per cent year-over-year, from $690 million in January 2017 to $1.096 billion in the same month this year. Hardware sales (for PS4, Nintendo Switch, Xbox One and others) were up 119 per cent to $278 million, with software sales (games) up 51 per cent to $517 million.

This isn’t the only good news for game companies, because interest in eSports is continuing to rise as well. Research from statistics website Statista shows the global eSports market (which was valued at $493 million in 2016), will reach $1.49 billion in value by 2020, driven by more sponsorships, advertising and betting, increasing prize pools and rising tickets sales. Activision Blizzard (which saw its best operating income year ever thanks to momentum for the Call of Duty and Destiny franchises), is diving further into the e-sports realm and should be a stock on your radar!

Shares of major gaming firms have shown double to triple digit gains over the past year, while the industry’s first ETF dedicated to gaming (Managers Trust Video Game Tech ETF – GAMR) is up by around 50 per cent. Take-Two Interactive, the company which owns publishers RockStar Games, 2K Games and Private Division (responsible for Grand Theft Auto, Red Dead Redemption and other wildly popular titles), added over 110 per cent to its stock last year alone.

Investors looking to take advantage of a flourishing sector should take these equities into consideration, especially given the demand for high end gaming hardware elsewhere too – as can be seen by looking at the record-beating revenues for NVIDIA’s gaming business. The company, which has historically been known for providing top of the range graphics cards for gamers, is perfectly placed to reap major gains from PC games hardware sales, which are expected to grow up to $35 billion in 2018, according to Digi-Capital.

Gaming company stocks have been on a tear through 2017!

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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