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Ep. 524: Frankly Speaking: Industry on Fire – Video Games

Welcome back to another episode of Frankly Speaking.

If you’re interested in buying some video game stocks but don’t understand the differences between the U.S-based big three; Activision Blizzard (ATVI), Electronic Arts (EA), and Take-Two Interactive (TTWO)…

Today’s show is right up your alley.

In comparison to movies, TV studios, and other corners of the entertainment industry, no other sector has seen this much success in recent quarters. In fact, video game stocks have been in an all-out frenzy…

Revenues are growing… share prices are reaching all-time highs almost every week… and the combined market-cap of these companies now reach over $80 billion.

Over the last two years alone, shares of Take-Two have nearly tripled, Activision has more than doubled, and EA is up over 80%.

Industry on Fire

Unlike, let’s say, just five years ago… Video game companies no longer have to wait till Christmas time to make their profits. Those days are over.

Today, digital revenues now come from an array of sources like in-game advertising, downloadable map-packs, full-game downloads, subscriptions… along with the consumer’s ability to purchase virtual cars, clothes, and guns with real dollars – pushing company valuations even higher.

Let’s not forget to mention their impact on the world of mobile gaming as well…

Now although I wouldn’t be going all-in at these levels, on today’s show, I jump right into the nitty-gritty. And give away to listeners my favorite bet out of the three.

Switching gears, I turn my focus to a sector that is showing no signs of slowing down despite it’s recent rally.

I’ll be calling out what most investors in the industry are failing to realize… and explain why this basket of stocks still has plenty of room to run.

It’s my number one sector to invest in today.

Special thanks to George, Sheryl, and Jerry for all the questions. Keep them coming at Frank@CurzioResearch.com

Good Investing,

Frank Curzio

Click here to read the entire show transcript (pdf)

Stocks mentioned

  • Activision Blizzard (ATVI)
  • Take-Two Interactive (TTWO)
  • Electronic Arts (EA)
  • Advanced Micro Devices (AMD)
  • NVIDIA (NVDA)
  • Northern Dynasty (NAK)
  • Broadcom (AVGO)
  • Cypress Semiconductors (CY)
  • Skyworks Solutions (SWKS)
  • NXP semiconductors (NXPI)
  • Salesforce (CRM)
  • eBay (EBAY)

 

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