Explore these top gaming stocks – from RBLX to AMC

The pandemic has come as a blessing in disguise for the gaming and entertainment industry. It grew leaps and bounds as demand soared amid covid restrictions, with people having more time to spare on online games and entertainment avenues. Moreover, these companies constantly upgrade their technology prowess as they search for new revenue streams.

Many large companies have shown interest in the segment. Microsoft Inc’s (MSFT) plan to acquire Activision Blizzard (ATVI) and billionaire investor Warren Buffet US$1 billion stakes in the gaming company show their confidence in the industry. Also, close on the heels, Take-Two Interactive (TTWO) announced to acquire FarmVille creator Zynga for US$11.04 billion.

Here, we explore the top five gaming and entertainment stocks in the market. 

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Roblox Corporation (NYSE: RBLX) 

Market cap: US$31.18 billion

Closing price on February 16, 2022: US$53.87

 The San Mateo, California-based Roblox offers an online video game platform where gamers can create, develop, and monetize games.

For the fourth quarter ended December 31, 2021, its revenue increased by 83% YoY to US$568.8 million. The bookings grew 20% YoY to US$770.1 million, and the average daily active users (DAUs) increased by 33% YoY to 49.5 million.

For the full fiscal year, its revenue was US$1.9 billion, up 108% YoY, and the bookings increased by 45% to US$2.7 billion YoY, and DAUs grew by 40% to 45.5 million on a YoY basis.

The company booked a net loss of US$491 million or US$0.97 per share diluted in fiscal 2021. 

RBLX’s forward P/E ratio for one year is -99.05. The stock traded in the range of US$141.60 to US$53.63 in the last 52 weeks.

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GameStop Corporation (NYSE: GME) 

Market cap: US$9.8 billion

Closing price on February 16, 2022: US$128.33

 GameStop Corp is a multichannel videogame and consumer electronics retailer. 

 On February 3, it announced a partnership with Immutable X Pty Limited for its gaming and NFT marketplace scheduled for launch by the year-end.

For the quarter ended October 30, 2021, it booked a net loss of US$105.4 million or US$1.39 per share diluted compared to a net loss of US$18.8 million or US$0.29 per share diluted a year ago. The net sales were US$1.3 billion against US$1 billion in 2020.

Its forward P/E ratio for one year is -71.28. The stock traded in the range of US$348.50 to US$38.50 in the last 52 weeks.

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Advanced Micro Devices, Inc. (NASDAQ: AMD)  

 Market cap: US$141.15 billion

Closing price on February 16, 2022: US$117.69

 The Santa Clara, California-based AMD manufactures semiconductors for high-performance computing and graphics technologies used in gaming, data centers, etc.

 For the fiscal year ended December 25, 2021, it reported net revenue of US$16.4 billion and a net income of US$3.16 billion. Its EPS diluted was US$2.57 against EPS diluted of US$2.06 in fiscal 2020.

 On February 14, it completed the acquisition of Xilinx in an all-stock transaction.

 Its P/E ratio is 45.62, and the forward P/E ratio for one year is 32.65. The stock traded in the range of US$164.46 to US$72.50 in the last 52 weeks.

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 Corsair Gaming, Inc. (NASDAQ: CRSR)

 Market cap: US$2.2 billion

Closing price on February 16, 2022: US$23.61

Corsair Gaming Inc provides high-performance gear for gamers and content creators, such as keyboards, headsets, mousepads, etc. It is based in Fremont, California. 

 For the full year of 2021, the company earned net revenue of US$1,904.1 million, an 11% increase YoY. The gamer and creator peripherals segment net revenue grew 20% to US$647.2 million YoY. Its net income was US$101.0 million, or US$1.01 per share diluted, and the adjusted net income was US$144.9 million, or US$1.45 per share.

Its P/E ratio is 23.15, and the forward P/E ratio for one year is 15.06. The stock price moved in the range of US$44.25 to US$17.68 in one year.

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Source – Pixabay

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AMC Entertainment Holdings, Inc. (NYSE: AMC) 

Market cap: US$10.1 billion

Closing price on February 16, 2022: US$19.67

 AMC Entertainment Holdings Inc owns and operates theatres in the US and Europe. It is based in Leawood, Kansa.

 On February 1, it announced the preliminary results for the fourth quarter ended December 31, 2021. Its revenue to be around US$1,171.6 million, and the net loss to be around US$194.8 million to US$114.8 million. Its cash and equivalents were US$1,592.5 million as of December 31, 2021.

 Its forward P/E ratio for one year is -7.21. The stock price moved in the range of US$72.62 to US$5.32 in the last 52 weeks.

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Bottomline  

The interest in the gaming and entertainment companies indicate their growth potential. Many companies like Discord and EPIC Games are likely to go public.