If you are looking for stocks with the potential for growth, video game company stocks are an excellent investment. The competitive world of video gaming is rising at a tremendous rate. Some experts even believe eSports will be a bigger sport than hockey and the MMA by 2025.
But before you rush to purchase the most hyped stocks out there, find out which video companies have future projects in development. That way, you can make more informed predictions of which company stocks are likely to rise the highest in 2020.
Internet giant Alphabet is most famous for its Google search engine but it’s also a big player in the cloud gaming sphere. Earlier this year, the California-based conglomerate announced it would launch a cloud-gaming platform named Google Stadia later this year.
As Alphabet explained, Google Stadia will be a ‘pay to play’ platform available to gamers in all parts of the world. At the beginning, the library will consist of 30 games but more titles will be rolled out in 2020. There are also rumors Google might introduce a free tier to the platform but it will come at the expense of gamers purchasing ach game they intend to play.
All in all, Google Stadia is threatening to disrupt the online gaming sector and that’s good news to stock investors. The gaming cloud will be the biggest of its kind. And considering Google has the resources required to host millions of gamers—the Stadia could boost its stock prices dramatically.
Netent (NTNTY)
Netent isn’t exactly a video game company but it develops games, nonetheless. To be precise, the Swedish developer specializes in creating online casino games like slots, blackjack and poker. It launched in 1996 and has remained one of the most established software providers in the casino gaming sector.
So, what makes Netent a prime company for buying stocks? It’s a forward thinking software provider. Since its inception, the Swedish company’s games have dominated the best UK online casinos and elsewhere around the world for several reasons. These games feature impeccable graphics and gameplay. They are engaging and payout to players frequently.
In other words, Netent provides games gamblers love to play. More importantly, it thrives through innovation and adopting new technologies fast. For instance, the company already owns nearly a dozen slot machines that support VR. In 2020 and beyond, therefore, look forward to Netent stocks continuing their rise at the London and Swedish stock exchanges.
Electronic Arts (EA)
If you are looking for stocks that rise gradually and steadily, consider investing in EA stocks. The company has been developing video games for over two decades. Its games like Need for Speed, Madden NFL, FIFA and Battlefield earn hundreds of millions in revenues each year.
Similar to Alphabet, EA is also building an online gaming platform. And while its platform might not be as big as Google Studio, the developer publishes a lot of popular games. So, if it restricts the distribution of these games to its platform, EA stocks could soar immensely.
After all, content is the primary driver of online companies. Whoever owns the rights to the best video games will benefit the most from cloud gaming. And with a gaming platform, EA will have both the content and a platform to play the games.
Microsoft (MSFT)
Gamers know Microsoft for its Xbox console but the giant software company also owns a series of video game companies. Last year, Microsoft announced its interest in cloud gaming and launched a preview of its platform in October.
The company allowed access to these games: Halo 5, Guardians, Killer Instinct, Sea of Thieves and Gears. Again, players must have an android device—meaning iPhone users will be left out of the new project. Despite that, Microsoft shows all signs of being one of the best things to ever happen to mobile gaming.
With the addition of Xbox live, Microsoft will have more revenue streams in 2020. Naturally, that will lead to more profits and a boost on the company’s stock prices.
Advanced Micro Devices (AMD)
AMD is one of the most dominant forces in the graphics chip industry. Its GPU chips run Microsoft Xbox consoles and millions of laptops and desktop devices around the world. But as the video game industry takes a shift towards online gaming, AMD will be keen to partner with companies interested in creating online gaming networks.
The company has already sealed two crucial deals. It will power Google Stadia and Microsoft’s Project Xcloud, at least for the next couple of years. So, if these two gaming platforms sprout into successful networks, AMD stocks will have a significant boost.
Nvidia (NVDA)
Nvidia is AMD’s biggest rival in the GPU chip sector and that’s because it’s always one step ahead. For instance, the 2001-launched company already has an online gaming platform called GeForce Now. Video gamers using the platform love it.
And with more than 80 games to play, GeForce Now provides a lot more content than both Microsoft’s Xcloud and what Google Stadia will have at its launch. Cloud gaming aside, Nvidia is the king of GPU chips, a position it plans to hold for years to come.
In relation to stocks, Nvidia provides products projected to play an important role in the growth of video game companies. Whether it decides to power cloud gaming platforms or continues to sell chips at retail, Nvidia has a future in gaming.
Activision Blizzard (ATVI)
Blizzard might be the proud developer of the Call of Duty series, but it’s not having a great year at the stock market. The company has been struggling to put together double digit increases but only averages 2%.
In spite of its current state, though, Blizzard provides an excellent investment opportunity because of its huge interest in eSports markets. Last year, the developer launched a country-wide eSports league that has been growing steadily throughout the US.
With the help of sponsors and ticket sales from video game fans, Blizzard could rack up its profits by a significant amount in 2020. To add on to that, it will continue to launch new games and expand its Call of Duty Series.
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