Despite a global financial crisis last year, video-game stocks remained among the top performers as people enjoyed indoor activities like gaming through Jackpotjoy promotions and casino games. The stability of video game stocks was based on the investment theory that with most people at home, video games and gaming hardware demand would increase.
While that was true to some extent, there wasn’t much growth as most investors would have projected. There’s also more disruption in the gaming industry now more than ever. Companies must adapt and shape their offerings to suit the players’ demands for them to deliver great returns to the investors. Here are three top-performing video game stocks that will offer the best value and with the most momentum.
Nintendo Co. Ltd.
Launched as a company for playing cards, this Japan-based multinational company is a household name in the gaming and consumer electronics market. Nintendo became a household name in the video games market in the 1970s, thanks to the Nintendo Entertainment System. This innovation set the company apart from the cloud, and today, this Japanese corporation is among the top performers in the video game stock market.
Nintendo’s stock prices seem to coincide with the release of new products, especially with new games. And as always, consumer perception and social media can break or make a company, even multinational corporations like Nintendo. Unfortunately, their stock prices have continued plummeting in January, although market experts predict that it will witness tremendous growth this year.
Avid Technology Inc
Avid Technology is known for software development and creation of other systems like newsroom computer systems, digital editing services, and digital audio systems. During the third quarter (Q3) of 2020, the company reported a soaring net income with a 56.1% YOY (Year Over Year) rise in operating income. That was driven by reduced operating expenses and improved profit margins.
Avid also recorded a 73.9% YOY growth in subscription revenue thanks to about 27,000 new subscribers in Q3. The company also started reshaping its executive team in December 2020, recruiting top technology and business talent for strategic growth.
Activision Blizzard Inc
A developer, publisher, and distributor, Activision Blizzard deals with gaming software and other peripheral products. Activision boasts of offerings in many categories, including racing, action/adventure, simulation, role-playing, and strategy. During the third quarter of 2020, the company reported a 52.4% YOY rise in net revenue. Thanks to several successful live operations, content launches, and new approaches to key areas, their net income tripled.