4 Hot Gaming Stocks To Watch Next Week
The gaming industry has been growing at a respectable rate over the past few years. Hence, gaming stocks have also been a popular investment theme in the stock market. Needless to say, the pandemic was a pivotal driving force for the industry. That’s because many people turned to games for indoor entertainment.
Well, many would also expect the hype around the gaming industry to die off as lockdown restriction eases. That said, many gaming companies continue to prove their doubters wrong. Electronic Arts (NASDAQ: EA) recently announced its preliminary financial results for its fiscal third quarter. And, it was the largest quarter in the company’s history for net bookings, underlying profitability, and cash generation. In particular, net bookings for the trailing twelve months was $7.254 billion, up 22% year-over-year.
On top of that, Microsoft (NASDAQ: MSFT) is also expanding on the gaming front as it recently announced plans of acquiring Activision Blizzard (NASDAQ: ATVI). With more than three billion people playing games today, the industry is potentially the largest and fastest-growing form of entertainment. Not to mention, the highly anticipated metaverse could bring gaming to a whole new level entirely. So, if you’re keen on investing for the future, let’s look at some of the top gaming stocks in the stock market today.
Top Gaming Stocks To Buy [Or Sell] This Month
- Roblox Corporation (NYSE: RBLX)
- Advanced Micro Devices, Inc. (NASDAQ: AMD)
- Unity Software Inc (NYSE: U)
- Sea Ltd (NYSE: SE)
Roblox
Roblox is a gaming company that allows billions of users to play and communicate through its Roblox platform. In fact, the platform is powered by its global community of developers that produce their own immersive multiplayer experiences using Roblox Studio, its intuitive desktop design tool. Impressively, it also ranks as one of the top online entertainment platforms for audiences under the age of 18. Roblox will announce its fourth-quarter and fiscal year 2021 financials on February 15 after the market closes.
As the metaverse continues to expand and develop, Roblox continues to be at the forefront, bringing new experiences and performances to its own metaverse. On February 1, the company announced that it will be bringing DJ David Guetta to Roblox for a first of its kind DJ party that will premier today on February 4 at 4:00 p.m. ET. “Working on this concert has allowed me to bring an amazing new creation to life with design and production to suit the virtual world,” commented Guetta. “We’ve built something that will play host to one of the most unique shows I’ve ever done and I can’t wait for everyone to experience it with me.” Given this piece of news, is RBLX stock worth investing in today?
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Advanced Micro Devices
Following that, we have Advanced Micro Devices or AMD, a gaming company that focuses on the development of its computer and graphics processors. Hundreds of millions of consumers, leading Fortune 500 businesses and cutting-edge scientific research facilities around the world rely on AMD technology. Also, its employees around the world focus on building great products and continue to push the boundaries. On Tuesday, the company also reported its fourth-quarter financials.
Diving in, revenue for the quarter was $4.8 billion, increasing by 49% year-over-year. Furthermore, operating income for the quarter was $1.2 billion. Also, net income was $974 million or a diluted earnings per share of $0.80. AMD says that 2021 has been an outstanding year with record annual revenue and profitability. It also saw that all of its businesses performed extremely well, with data center revenue doubling year-over-year. This growth was driven by the growing adoption of AMD EPYC processors. For these reasons, should you be on the lookout for AMD stock?
Unity Software
Another top name to know in the gaming industry would be Unity. Essentially, it offers a platform for creating and operating interactive, real-time three-dimensional content. This includes Create Solutions and Operate Solutions that enables customers to create and monetize their content across a range of third-party content distribution platforms. With more than 2.5 billion monthly users consuming content created or operated with Unity solutions, it should not be surprising that U stock is now gaining traction among investors.
Well, Unity recently announced its fourth-quarter and full-year 2021 earnings report, and along with it, plenty of optimism moving forward. Its revenue came in at $315.9 million, up 43% year-over-year and ahead of guidance. Meanwhile, its full-year 2021 revenue was $1.1 billion, representing an increase of 44% year-over-year. In addition, Unity now expects its full-year 2022 revenue to be $1.5 billion. This exceeds analysts’ estimate of $1.43 billion. All in all, the company appears to be trending in the right direction and the hype surrounding the metaverse would likely be beneficial for Unity long-term. Given these positive sentiments, would you consider U stock a top gaming stock to buy?
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Sea
Last but not least, we will be looking at the consumer Internet company, Sea. While it is renowned for being a rapidly growing e-commerce company, it also has a strong hand in the gaming space. The company’s Garena platform offers mobile and personal computer online games. Additionally, it offers e-sports and provides access to other entertainment content and social features. To list a few, gamers can live stream their gameplay, chat with other users and interact through online forums.
For those unaware, Garena is the developer and publisher of Free Fire, a popular mobile battle royale game. The game was one of the most downloaded mobile games globally over the past few years. Given that it will be reporting its fourth-quarter earnings on February 14, let us review its previous quarter. During the company’s third quarter, it reported a GAAP revenue of $2.7 billion, an increase of 121.8% year-over-year. Out of which, its digital entertainment revenue was $1.1 billion. Besides that, its gross profit increased to $1.0 billion, up by a whopping 147.5% year-over-year. Now, despite its strong financials, SE stock has been sliding in recent times. With that said, could another strong quarterly report turn its fortunes?
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