5 Top Gaming Stocks For Your May 2022 Watchlist
With the broader stock market potentially facing another uphill battle this week, gaming stocks could be worth considering. To begin with, investors will likely be anticipating the effects of the Federal Reserve’s upcoming interest rate hike on stocks. For the most part, this would weigh in on most high-growth areas, primarily in the tech space. Nevertheless, it does not undermine the immense need across consumer and professional markets for the tech of today. Regarding the earlier, gaming has been and still is a key market of entertainment in play today. In fact, gaming stocks continue to make headlines in the stock market today as well.
Namely, we could look at the current attention around Microsoft’s (NASDAQ: MSFT) acquisition of Activision Blizzard (NASDAQ: ATVI). Over the weekend, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) said that it increased its stake in Activision to a whopping 9.5%. This update comes just days after Activision shareholders approved the $68.7 billion takeover offer. Worth mentioning, Warren Buffett was the one that made the call on the additional share purchase. With the Oracle of Omaha seemingly keen on this massive gaming industry deal, investors could follow suit. On that note, here are five other top gaming stocks to watch today.
Gaming Stocks To Buy [Or Sell] Today
Amazon is a multinational company that focuses on e-commerce, cloud computing, and gaming among others. Its Amazon Games for instance has developed and published New World and also helped publish the immensely popular Lost Ark. It also collaborates with big names and boasts its own in-house game development studios, along with Amazon Prime, Prime Gaming, Twitch, and AWS Game Tech. Last Friday, Morgan Stanley (NYSE: MS) issued a list of comprehensive top analyst picks for North America, with Amazon being on that list.
Morgan Stanley sees a 43.8% upside for Amazon, citing cloud adoption hitting an inflection point and advertising serving as key areas for further growth potential and profitability. On April 21, 2022, the company announced Buy with Prime, a new benefit for Prime members that will extend the convenience of Prime shopping to online stores outside of Amazon.com. Buy with Prime will initially be available by invitation only for merchants using Fulfillment by Amazon (FBA) and will roll out through 2022 as merchants are invited to participate, including those not selling on Amazon or using FBA. All things considered, is AMZN stock worth investing in today?
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Take-Two Interactive Software Inc.
Take-Two is a video game company that owns two major publishing labels, Rockstar Games and 2K. It is also the owner of T2 Mobile Games. Its products are designed for both console systems and personal computers. The company’s portfolio of games includes BioShock, Grand Theft Auto, and Red Dead among others. Earlier in the year, the company announced that it was going to acquire Zynga (NASDAQ: ZNGA) in a cash-and-stock deal with a value of $12.7 billion, with Take-Two acquiring all outstanding shares of Zynga. The deal is expected to close in June.
The company says that this acquisition will help boost the company’s presence in the mobile gaming market. Furthermore, it will unify two global leaders in the entertainment business and establish Take-Two as one of the largest and most diversified mobile game publishers in the industry. Also, both companies have created iconic franchises and will combine to form one of the largest and most diverse portfolios of intellectual properties in the sector. Given this piece of information, is TTWO stock a top gaming stock to consider buying right now?
Electronic Arts Inc.
Electronic Arts is a video game company that was a pioneer in the computer game industry. In fact, the company is a global leader in digital interactive entertainment. The company also develops and delivers games, content, and online services for internet-connected consoles, mobile devices, and personal computers. Ahead of its fourth-quarter financials on May 10, 2022, how has the company been doing financially?
In its third-quarter financials in February, the company reported that net bookings were up by 22% year-over-year to $7.25 billion. Furthermore, its EA player network has grown to more than 540 million unique active accounts. Total net revenue for the quarter was $1.78 billion, an increase of 6.9% year-over-year. CFO Blake Jorgensen said, “Our portfolio approach will enable us to deliver organic growth in the double digits this year, continue to deliver strong cash flow, and provide a strong foundation for growth as we look to the future.” With that being said, is EA stock worth adding to your portfolio?
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Another name to consider among the top gaming firms in the market now would be Nvidia. In essence, the company is an industry leader when it comes to the gaming and computing hardware markets. Through its vast chip portfolio, Nvidia is actively working on creating cutting-edge tech hardware. Among its core focuses are the gaming, pro graphics processing, artificial intelligence (AI), data center, and autonomous machine fields to name a few. With all this in mind, investors looking to bet on the gaming space could be eyeing NVDA stock now.
At the same time, Nvidia is not sitting idly by as well. Just last week, the firm revealed new optimizations for its NVIDIA Studio platform. The likes of which mainly cater to artists and industry professionals in the digital design industry. Accordingly, this would include optimizations for Unreal Engine 5, the premier triple-A gaming development tool in the market today. In detail, these integrations are thanks to Nvidia’s ongoing partnership with Epic Games, the creators of the development platform. After considering all this, would NVDA stock be a buy for you in the stock market today?
Last but not least, we will be taking a look at Roblox. For those uninitiated, Roblox is a prominent name in the gaming scene today. The company primarily operates via its massive online sandbox gaming platform of the same name. In the world of Roblox, over 49 million daily active users can freely create digital worlds and games using a vast array of in-platform tools. Thanks to the latest reports on Roblox, it seems that the company intends to bolster this aspect of its platform.
Notably, a recent patent filing from the company indicates that Roblox is cracking down on counterfeit in-game items. Essentially this will act as an anti-cheat software for the platform. Ideally, the company is looking to provide a more fair and enjoyable experience for new players coming on board. Having read all this, will you be keeping an eye on RBLX stock?
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