4 hot gaming stocks to watch next week
The gaming industry has grown respectably over the past few years. Therefore, gaming stocks have also been a popular investment theme in the stock Exchange. Needless to say, the pandemic has been a key driver for the industry. This is because many people have turned to games for indoor entertainment.
Well, many would also expect the hype around the gambling industry to die down as lockdown restrictions ease. That said, many game companies continue to prove their doubters wrong. electronic arts (NASDAQ:EA) recently announced its preliminary financial results for its third fiscal quarter. Additionally, it was the largest quarter in company history in terms of net bookings, underlying profitability and cash generation. In particular, net bookings for the last twelve months were $7.254 billion, up 22% year-on-year.
In addition to that, Microsoft (NASDAQ: MSFT) is also expanding on the gaming front, recently announcing plans to acquire ActivisionBlizzard (NASDAQ: ATVI). With over three billion people playing games today, the industry is potentially the largest and fastest growing form of entertainment. Not to mention that the highly anticipated Metaverse could take the game to a whole new level. So, if you want to invest for the future, let’s take a look at some of the best game actions on the stock market today.
The best gambling stocks to buy [Or Sell] This month
Roblox is a gaming company that enables billions of users to play and communicate through its Roblox platform. In fact, the platform is powered by its global community of developers who produce their own immersive multiplayer experiences using Roblox Studio, its intuitive desktop design tool. Impressively, it also ranks among the best online entertainment platforms for under 18s. Roblox will announce its fourth quarter and fiscal year 2021 financial statements on February 15 after the market closes.
As the Metaverse continues to expand and grow, Roblox continues to be at the forefront, bringing new experiences and performance to its own Metaverse. On February 1, the company announced that it would be bringing DJ David Guetta to Roblox for a first-of-its-kind DJ party taking place today, February 4, at 4:00 p.m. ET. “Working on this concert allowed me to bring an amazing new creation to life with design and production suitable for the virtual world”, Guetta commented. “We’ve built something that will house one of the most unique shows I’ve ever done and I can’t wait for everyone to experience it with me.” Given this news, is RBLX stock worth investing in today?
Following this, we have Advanced micro-systems or AMD, a gaming company that focuses on developing its computer and graphics processors. Hundreds of millions of consumers, leading Fortune 500 companies and leading scientific research centers around the world trust AMD technology. Moreover, its employees around the world are focused on creating great products and continue to push the boundaries. On Tuesday, the company also released its fourth quarter financial statements.
Diving, revenue for the quarter was $4.8 billion, up 49% year-over-year. Additionally, operating profit for the quarter was $1.2 billion. Additionally, net income was $974 million or diluted earnings per share of $0.80. AMD says 2021 has been a bumper year with record annual revenue and profitability. It also found that all of its businesses performed extremely well, with data center revenues doubling year over year. This growth was driven by the increasing adoption of AMD EPYC processors. For these reasons, should you be on the lookout for AMD stocks?
Another big name to know in the gaming industry would be Unity. Essentially, it offers a platform to create and operate interactive three-dimensional content in real time. This includes Create Solutions and Operate Solutions which allow customers to create and monetize their content on 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’s no surprise that U stock is now gaining traction with investors.
Well, Unity recently announced its fourth quarter and full year 2021 earnings report, and with it comes a lot of optimism for the future. Its revenue was $315.9 million, up 43% year-over-year and ahead of forecast. Meanwhile, its revenue for the year 2021 was $1.1 billion, representing a 44% year-over-year increase. Additionally, Unity now expects its revenue for the year 2022 to be $1.5 billion. This exceeds analysts’ estimate of $1.43 billion. Overall, the company seems to be moving in the right direction, and the hype surrounding the Metaverse would likely benefit Unity in the long run. Given these positive sentiments, do you consider U stock to be one of the top gaming stocks to buy?
Finally, we will look at the consumer internet company, Wed. Although it is renowned for being a fast-growing e-commerce company, it also has a strong hand in the gaming space. The Company’s Garena platform offers online gaming on both mobile and PC. Moreover, it offers esports 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 who don’t know, Garena is the developer and publisher of Free Fire, a popular mobile battle royale game. The game has been one of the most downloaded mobile games in the world for the past few years. Given that it will release its fourth quarter results on February 14, let’s review its previous quarter. During the third quarter, the company reported GAAP revenue of $2.7 billion, a year-over-year increase of 121.8%. Of which, its digital entertainment revenue was $1.1 billion. On top of that, its gross profit rose to $1.0 billion, up 147.5% year-over-year. Now, despite its strong financials, SE stock has been slipping lately. That said, could another strong quarterly report turn the tide?
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