Video game stocks are crushing it this earnings season…
As consumers continue to work and attend school from home, many have turned to video games to help entertain themselves.
These factors, combined with lockdowns, travel restrictions, and other social distancing measures created a windfall of demand for some of the biggest players in the market.
Nintendo’s (OTCMKTS: NTDOY) Switch was not only the best-selling console in 2020 but also posted the best console sales for any year ever. This helped drive the company’s revenue up by 37%, year-over-year.
Meanwhile, Microsoft (NASDAQ: MSFT) and Sony (NYSE: SNE) reported their newest generation of consoles sold out nearly instantaneously once they hit the market. Even as they’ve replenished their supplies, online orders and in-store purchases have seen them disappear within minutes.
But this bullish momentum was seen across the video game sector as a whole, and not just the biggest console developers around…
Market research company NPD reported that the overall industry saw sales surge by 27% to $56.9 billion in 2020. And this number could grow much higher over the next several years.
That’s because the video game industry already had major growth catalysts even before people were forced to hunker down and stay inside. Video game streaming platform Twitch averaged millions of viewers per day in 2019. The esports industry – which holds major competitions for the best video game players around – generated nearly $1 billion in revenue in the same period.
Now, the video game industry could hit a value of $154.6 billion over the next twelve months, according to data analytics company Statista. Between this year and 2025, that number could skyrocket to $221 billion.
This means the industry’s set to grow at an incredible pace. And any video game company doubling down on the sector’s future could see strong profits over the long-term.
Related: “Massive Wealth Shift Coming…”
That’s exactly why I’m bringing you one of the best video game stocks around. It’s not only a market leader but also one of the best performers this earnings season.
This Video Game Stock Created Last Year’s Best-Selling Video Games
American video game company Activision Blizzard (NASDAQ: ATVI) is one of the biggest video game publishers in the world.
The company is most popularly known for its multi-billion-dollar franchise, Call of Duty, and its massively-multiplayer online (MMO) game World of Warcraft. However, it’s also the publisher behind 2019’s “Game of the Year,” Sekiro: Shadows Die Twice, as well as the popular series, Tony Hawk’s Pro Skater.
While the company doesn’t have the most diverse portfolio compared to competitors such as Electronic Arts (NASDAQ: EA), its games consistently generate massive amounts of revenue. Activision’s Call of Duty: Black Ops Coldwar and Call of Duty: Modern Warfare were the two best-selling titles for all of 2020.
Cold War has so far sold 5.7 million copies since its October release. Meanwhile, 2019’s Modern Warfare has sold over 30 million copies.
These figures have helped push Activision’s biggest franchise to a value of $9.7 billion. They also enabled the company to post blow-out earnings in the fourth-quarter…
Activision’s earnings per share were $1.21, beating estimates of $1.18. The company’s revenue for the quarter was $3.05 billion compared to the anticipated $2.83 billion. The publisher’s monthly active users were a whopping 397 million.
And this momentum will only continue through the year…
The company forecasts 2021’s earnings per share will be $3.60 versus the consensus estimate of $3.48. Revenue is projected to surge to $8.45 billion, beating the expected $8.34 billion.
So, given the immense popularity of Activision’s Call of Duty franchise, combined with its growing player base, the company will likely continue to expand its current market dominance and overall profits.
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