The Best Mobile Gaming Stocks to Invest in Right Now
Mobile gaming is thriving, in fact with the arrival of 5G networks around the globe and the increasing affordability of smart phones, the mobile gaming industry is booming. With such growth, mobile gaming stocks are incredibly attractive to investors. While there is no definitive list of mobile gaming stocks we’ll try and give you a list of mobile gaming stocks well worth considering right now.
A study released this January reveals mobile gaming may have contributed 60% to the entire video games market’s revenue in 2019. Mobile gaming generated $49 billion in revenue and overall profit of nearly $17 billion, as per the report. The mobile gaming market is also expected to grow by 2.9% each year, reaching at least $56.6 billion by 2024.
Mobile games stocks likely to keep growing
Even more recently, in May 2020 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.” Hall says:
“The pandemic is accelerating existing trends within the gaming industry.”
He finds that recent lockdowns are increasing the use of video games and esports and that revenue for many gaming companies has “increased during the pandemic.” This revenue increase is in sharp contrast to the experience of many other businesses and industries through recent events. After stock market turmoil earlier this year, investors are looking to new opportunities and esports stocks, video games stocks and mobile gaming stocks are perfect mediums to invest in due to their recent unprecedented growth.
The WEF’s Hall quotes Newzoo’s 2020 Global Games Market figures, where it predicts that mobile game revenues in 2020 will reach $77.2 billion and form 48% of a global game market that will reach a value of $159.3 billion this year. Mobile gaming, says Newzoo, will see year-on-year growth of 13.3% versus overall games market growth of 9.3%.
Hall says a gaming business model of in-game monetization “has come in tandem with improvements to gaming hardware, bandwidth and mobile internet, which have made high-quality games more accessible across devices and platforms.” He adds:
“Indeed, close to half (48%) of the industry’s revenue now comes from mobile gaming.”
So, what are the best mobile gaming stocks to invest in at the moment – let’s take a look.
This mobile game developer has officially licensed content from Disney. They just released Disney Sorcerer’s Arena as well as a new instalment in the Tap Sports Baseball Series. The publisher also has new titles in development. As per Motley Fool, Glu Mobile has seen its revenue increase 12% year-on-year in the first quarter of 2020. Glu Mobile’s stocks are up 241% over the past three years and 48% year to date.
Analysts expect Glu Mobile earnings to grow an annualized 15% over the next five years, which as per Motley Fool, could lead to a doubling of its stock price.
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 scare over the HFCAA legislation and de-listing of Chinese companies might see Tencent stock go down a bit in the short term. This is ideal for anyone seeking value out of their investment, as we estimate Tencent will recover in value by the end of the year.
Farmville publisher Zynga has seen its sales catapult over 50% higher due to consumers in isolation and lockdown playing more mobile games. Earlier this 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 adds that “people are rediscovering the value of games.” He’s predicting that Zynga could see second-quarter sales of $400 million up 31% year-on-year and total revenue for 2020 up 25% year-on-year. Zynga has new titles including Harry Potter: Puzzles Spells, Puzzle Combat, and FarmVille 3 in soft launch.
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