The Best Mobile Gaming Stocks to Invest in Right Now | Our Top 5
Mobile gaming stocks are becoming incredibly attractive to investors. While there is no definitive list of mobile gaming stocks, we give you a list of mobile gaming stocks well worth considering right now.
A study released last January revealed mobile gaming may have contributed more than 50% of the entire video games market’s revenue in 2020. With mobile gaming thriving, the arrival of 5G networks around the globe is increasing the playability and affordability of smart phones. The mobile gaming market is expected to grow by roughly 3% each year, reaching at least $56.6 billion by 2024. With these growth estimates, its important to ask: Where can you get the best return on investing in mobile games?
Mobile games stocks likely to keep growing
Just like the year before, Newzoo’s esports report suggests good things about the mobile esports market – in their 2021 Global Esports & Live Streaming Market Report, they suppose a growth of +14.5% from $947 million to $1084 million by the end of the year.
Over 75% of that amount will come from media rights and sponsorships – and with just how much money is in this segment, mobile games especially are popular choices for investors and fans alike. A new trend – or at least relatively new trend – in the investment side of esports are NFTs and other cryptogaming ventures.
Last year, the World Economic Forum’s Project Lead, Media, Entertainment and Culture, Stefan Hall declared in a blog post that “Covid-19 is taking gaming and esports to the net level.” stating:
“The pandemic is accelerating existing trends within the gaming industry.”
At the time, lockdowns increased the use of video games and esports and the revenue for many gaming companies has “increased during the pandemic.” This revenue increase was in sharp contrast to the experience of many other businesses and industries. With investors looking into new opportunities both esports stocks and video games stocks became perfect mediums to invest in. The current trend of video game growth is still active in late 2021, and likely to continue in 2022 as well.
Additionally, unique collectible aspect of products like Fan Tokens and NFTs make them a desirable item for quite a lot of investors and large sums of money are put into NFT projects on a daily basis. You can check out some of the most promising cryptogaming projects – or you can read on to find out about some of the best mobile gaming stocks out there.
Back to the topic at hand; – The unprecedented growth of gaming in all segments is also hitting the mobile gaming industry. Plenty of developers are seeing increased revenue from mobile games to such an extent that a successful mobile launch can boost stock prices by several percentage points.
This makes us wonder: What are the best mobile gaming stocks to invest in at the moment?
1. SciPlay Corp
This developer of mobile and web games offers casino and betting games as well as ‘normal’ games – and some mix of both. For example, Monopoly Slots and Bingo Showdown.
Earlier this year, they announced their purchase of a Finnish casual mobile gaming developer Koukoi Games Oy – they are expanding, and they are doing so quickly. While details of the deal weren’t released, it still puts SciPlay Corp at the top of the list of the ‘to watch’ mobile gaming stocks for 2021!
Known for publishing exclusively free to play mobile games, Playtika has kept a steady growth curve for over a decade. With over 2.1 billion in revenue in 2020 and an excess of 5000 employees, they currently operate 14 titles, and service millions of active users. The developer went public on January 20, 2021 with common stock value at $27 per share. Since then we’ve witnessed shifts in value ranging between 21-33$ per share in a six-month period.
If you are interested in actively trading a more “volatile” stock, you should definitely follow this developer closely.
As one of the largest entertainments and gaming companies in the world, it’s no surprise Tencent is doing well right now. Their gaming business is booming and expanding year upon year. Zacks says a surge in the number of mobile game downloads and new releases to fuel interested consumers is boosting the mobile gaming space. Tencent has reported better than expected earnings and revenues because of its gaming segment including first-quarter 2020 non-GAAP earnings which beat the Zacks Consensus Estimate by over 14%. Tencent’s revenues also exceeded the Zacks consensus mark by 7.5%. Titles such as Honor of Kings and Peacekeeper Elite are doing well for the Chinese corporate and it says its overseas titles including PUBG Mobile and Clash of Clans are driving revenue growth.
Tencent stock might be slumping in the short term. The recent change in legislation that severely limited the amount of time Chinese teenagers can play video games for is likely to impact the development of the gaming company. This could lead to a further expansion into the West, at the expense of the handicapped Chinese market for young players.
Farmville publisher Zynga has seen its sales catapult over 50% higher due to consumers in isolation and lockdown playing more mobile games. Last May Zynga raised its annual financial guidance and Chief Executive Frank Gibeau says a “tremendous number of people have been reactivated back into the habit of playing.”
The CEO told MarketWatch that this increase in patronage of mobile games will likely turn into revenue results for the second-quarter of 2020. Gibeau added that “people are rediscovering the value of games.” Their estimations of growth exceeding 25% came true – Facebook’s Zynga has had a good year, and is not about to slow down either.
Famous Korean based developer NCSoft is a regular on this list, thanks to continuous development for over two decades. While the bulk of their value comes from the expansive portfolio of assets and subsidiaries, the company is heavily leaning into mobile games as of 2021. Three new game releases in 2021 alone: Pro Baseball H3!, Trickster M and Blade & Soul 2 and another two in development are definitely something to keep an eye on.
NCSoft should be your chose if you seek a company with a stable growth curve that is not afraid to evolve and expand their portfolio. Expect them to grow their mobile gaming segment exponentially in 2022.
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