Top 5 US gaming stocks to explore in 2022

Highlights

  • Activision Blizzard expects its revenue to be about US$2.02 billion in Q4, FY21
  • Take-Two Interactive projected its revenue to be between US$3.35 billion and US$3.45 billion in FY22
  • Unity Software expects its revenue to be between US$285 million and US$290 million in Q4, FY21

Gaming stocks are gaining attention from investors, especially after the recent deal between GTA’s publisher and Farmville maker. On Monday, January 10, Take-Two Interactive announced that it would acquire all the outstanding shares of Zynga in a cash and stock deal valued at US$9.86 per share or around US$12.7 billion.

Meanwhile, the gaming sector is considered a fast-growing sector that some experts believe to have significant growth potential. In addition, the Covid-19 pandemic has also fueled gains in the industry, as the demand for products and services from the sector has also increased.

Here we explore some of the gaming stocks that may continue to be in the limelight in the coming days.

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Activision Blizzard, Inc. (NASDAQ: ATVI)

Activision Blizzard is a video gaming firm that specializes in developing and publishing interactive gaming content and services. It is based in Santa Monica, California.

The shares of the company closed at US$65.85 on January 11, up 4.34% from their closing price of January 10. Its stock value increased by 12.18% over the past 30 days.

The firm has a P/E ratio of 19.48, and a forward one-year P/E ratio of 18.08. Its EPS is US$3.38. The 52-week highest and lowest stock prices were US$104.53 and US$56.40, respectively. Its trading volume was 10,728,600 on January 11.

The company will release its fourth-quarter fiscal 2021 results on February 3, after the market close. The company's revenue surged near 6% YoY to US$2.07 billion in Q3, FY21. Its net income was US$639 million, as compared to US$604 million in Q3, FY20. For the fourth quarter of fiscal 2021, the company expects its net revenue to be around US$2.02 billion.

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Gaming stocks to explore amid the sector boom

Source: Pixabay

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Take-Two Interactive Software, Inc. (NASDAQ: TTWO)

Take-Two Interactive is one of the leading game publishing firms based in New York City. It primarily develops games through its labels like Rockstar games, 2K, and others.

The stock of the company closed at US$148.42 on January 11, up 3.8% from its previous closing price. The TTWO stock declined 10.73% over the past 30 days.

The market cap of the company is US$17.11 billion, the P/E ratio is 30.67, and the forward one-year P/E ratio is 42.18. Its EPS is US$4.84.

The stock saw the highest price of US$214.91 and the lowest price of US$138.19 in the last 52 weeks. Its share volume on January 11 was 7,451,585.

The company's revenue rose 2% YoY to US$858.2 million in Q2, FY22. On a GAAP basis, its net income came in at US$10.3 million, as compared to US$99.3 million in Q2, FY21. For full fiscal 2022, the company expects its revenue to be between US$3.35 billion and US$3.45 billion.

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Roblox Corporation (NYSE: RBLX)

Roblox is a technology firm that engages in an in-game creation system and offers an online gaming platform for its users. It is based in San Mateo, California.

The shares of the company closed at US$89.04 on January 11, up 4.12% from their closing price of January 10. Its stock value decreased by 20.34% over the past 30 days.

The firm has a market cap of US$51.53 billion. The 52-week highest and lowest stock prices were US$141.60 and US$60.50, respectively. Its trading volume was 13,972,210 on January 11.

The company's revenue surged 102% YoY to US$509.3 million in Q3, FY21. Its net loss came in at US$74 million, against a loss of US$48.61 million in Q3, FY20.

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Electronic Arts Inc. (NASDAQ: EA)

Electronic Arts is one of the major gaming companies that specializes in publishing games for console, computers, as well as mobiles. It is based in Redwood City, California.

The stock of the company closed at US$130.80 on January 11, up 1.47% from its previous closing price. The EA stock rose 3.18% over the past 30 days.

The market cap of the company is US$36.99 billion, the P/E ratio is 48.27, and the forward one-year P/E ratio is 23.31. Its EPS is US$2.71.

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The stock saw the highest price of US$150.30 and the lowest price of US$120.08 in the last 52 weeks. Its share volume on January 11 was 1,797,209.

The company will release its third-quarter fiscal 2022 results on February 1, after the closing bell. The company's net revenue was US$1.82 billion in Q2, FY22, as compared to US$1.15 billion in the year-ago quarter. Its net income came in at US$294 million, as compared to US$185 million in Q2, FY21.

For the full fiscal 2022, the firm expects its revenue to be around US$6.92 billion.

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Gaming Stocks: ATVI, TTWO, RBLX, EA, U

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Unity Software Inc. (NYSE: U)

Unity is a video gaming software development firm that offers its platform to create and operate interactive and 3-D content. It is based in San Francisco, California.

The shares of the company closed at US$129.71 on January 11, up 2.94% from their closing price of January 10. Its stock value plunged 7.18% over the past 30 days.

The firm has a market cap of US$37.90 billion. The 52-week highest and lowest stock prices were US$210.00 and US$76.00, respectively. Its trading volume was 3,281,207 on January 11.

The company will release its fourth-quarter fiscal 2021 results on February 3, after the market close. The company's revenue rose 43% YoY to US$286.3 million in Q3, FY21. Its net loss was US$115.15 million, versus a loss of US$144.71 million in Q3, FY20. For Q4, FY21, the firm expects its revenue to be between US$285 million and US$290 million.

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Bottom line:

Player engagement in the gaming sector is increasing significantly in recent days. The companies too might gain attention from investors and due to the increasing demands, it is thought that the sector could flourish in the coming days.

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