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Best Video Game Stocks 2023

Best Video Game Stocks 2023

If you want to invest as an expat or high-net-worth individual, which is what i specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).

Introduction

Diversifying your investment portfolio by spreading it across different industries is important because it reduces risk.

One such industry to consider is video gaming, which saw significant growth during lockdowns due to increased entertainment and social interaction demand.

The global gaming market has grown steadily, with experts projecting further growth to $268 billion by 2025.

Chip shortages in 2021, driven by cryptocurrency mining demand, impacted the industry.

Mobile gaming is on the rise, with many gamers engaging on mobile devices.

Start-up companies like Gala Games have also seen substantial growth, while established companies like Microsoft and Activision Blizzard offer solid investment options in the video game sector.

Let us now have a look at the best gaming stocks available in 2023, which are worth adding to your watchlist.

Nintendo (OTCMKTS: NTDOY)

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Price (October 2, 2023): $10.12

Analyst Rating: N/A

Dividend Strength: Weak

Projected Earnings Growth: -9.68% ($0.62 to $0.56 per share)

Buy or Sell?

Five Wall Street analysts have provided ratings for Nintendo in the past year, including two hold ratings and three buy ratings.

The consensus among these analysts suggests investors should consider a “moderate-buy” for NTDOY shares.

Performance in 2023

At the start of 2023, Nintendo’s stock was trading at $10.42. Since then, NTDOY shares have declined by 2.9%, currently trading at $10.12.

Are Investors Shorting Nintendo?

Short interest in Nintendo decreased in September, with 63,300 shares shorted, down 24.9% from the August 31st total of 84,300 shares.

With an average daily trading volume of 1,831,200 shares, the days-to-cover ratio is currently 0.0 days.

Earnings (last quarter)

Nintendo Co., Ltd. reported earnings per share (EPS) of $0.28 for the quarter, surpassing analyst expectations of $0.17 by $0.11.

The company’s revenue for the quarter was $3.36 billion, exceeding analysts’ projections of $3.12 billion.

Dividends

Nintendo (OTCMKTS: NTDOY) offers an annual dividend of $0.30 per share, currently yielding 2.94%.

Stock Split

Nintendo’s stock underwent a 4-1 split on October 4, 2022. Shareholders received four shares for every one share they held before the split.

Market Cap and Annual Revenue

Nintendo (OTCMKTS: NTDOY) generates $11.86 billion in annual revenue and has a market capitalization of $52.57 billion.

Microsoft Corporation (NASDAQ: MSFT)

Price (October 3, 2023): $312.18

Analyst Rating: Moderate Buy

Dividend Strength: Strong

Projected Earnings Growth: 13.94% ($10.90 to $12.42 per share)

Buy or Sell?

Over the past year, 38 Wall Street equities research analysts have provided ratings for Microsoft, including five hold ratings and 33 buy ratings.

The consensus among these analysts suggests that investors should consider a “moderate-buy” for MSFT shares.

Price Forecast

Based on forecasts from 38 research analysts, MSFT share price predictions range from $232.00 to $440.00.

The average expectation is to reach $376.34 in the next 12 months.

This implies a potential upside of 19.9% from the current stock price.

Performance in 2023

At the beginning of 2023, Microsoft’s stock was trading at $239.82.

Since then, MSFT shares have increased by 30.9% and are currently trading at $313.92.

Earnings Date

Tuesday, October 24, 2023.

Earnings (last quarter)

In the most recent earnings report on Tuesday, July 25th, Microsoft reported earnings per share (EPS) of $2.69 for the quarter.

This surpassed the analysts’ consensus estimates of $2.55 by $0.14.

The company’s revenue for the quarter was $56.19 billion, exceeding analysts’ expectations of $55.49 billion.

Dividends

Microsoft announced a quarterly dividend on Tuesday, September 19th.

Shareholders of record on Thursday, November 16th, will receive a dividend of $0.75 per share on Thursday, December 14th.

This represents an annualized dividend of $3.00 per share and a dividend yield of 0.96%, marking an increase from the previous quarterly dividend of $0.68.

Microsoft (NASDAQ: MSFT) pays an annual dividend of $2.72 per share, currently yielding 0.86%.

The company has consistently increased its dividend for 21 consecutive years, indicating a solid commitment to maintaining and growing its dividend.

Activision Blizzard, Inc. (NASDAQ: ATVI)

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Price (October 3, 2023): $93.94

Analyst Rating: Hold

Dividend Strength: Moderate

Projected Earnings Growth: 4.55% ($3.74 to $3.91 per share)

Buy or Sell?

Over the past year, 20 Wall Street analysts have provided ratings for Activision Blizzard, including four buy ratings and 16 hold ratings.

The consensus among these analysts suggests that investors should consider a “hold” for ATVI shares.

A hold rating implies that analysts recommend maintaining existing positions but not buying additional shares or selling existing ones.

Price Forecast

According to 20 research analysts, ATVI share price predictions range from $86.00 to $100.00, with an average target of $94.32 for the following year.

This indicates a potential upside of 0.4% from the current stock price.

Performance in 2023

On January 1st, 2023, Activision Blizzard’s stock was trading at $76.55.

Since then, ATVI shares have risen by 22.7% and are currently trading at $93.94.

Are Investors Shorting Activision Blizzard?

Activision Blizzard saw an increase in short interest during September, with 15,860,000 shares being shorted.

This represents a 16.7% increase from the August 31st total of 13,590,000 shares.

With an average daily trading volume of 10,760,000 shares, the current days-to-cover ratio stands at 1.5 days, with 2.2% of the company’s shares being sold short.

Earnings Date

Monday, November 6, 2023.

Earnings (last quarter)

In the recent earnings report on July 19th, 2023, Activision Blizzard, Inc. reported earnings per share (EPS) of $0.95 for the quarter.

This surpassed the analysts’ consensus estimates of $0.78 by $0.17.

The company generated $2.46 billion in revenue during the quarter, exceeding analysts’ expectations of $2.44 billion.

Activision Blizzard had a net margin of 24.87% and a trailing twelve-month return on equity of 14.87%.

Dividends

Activision Blizzard announced an annual dividend on Tuesday, July 18th.

Shareholders of record on Wednesday, August 2nd, received a dividend of $0.99 per share on Thursday, August 17th.

This represents a dividend yield of 1.07%, marking an increase from the previous annual dividend of $0.47.

Activision Blizzard pays an annual dividend of $0.99 per share, currently yielding 1.06%.

The company does not yet have a strong track record of dividend growth, with a dividend payout ratio of 36.26%.

However, this payout ratio is healthy and sustainable, below 75%.

Based on earnings estimates, ATVI is expected to have a dividend payout ratio of 25.32% next year, indicating the potential for sustained or increased dividends.

NVIDIA Corporation (NASDAQ: NVDA)

Price (October 3, 2023): $435.67

Analyst Rating: Moderate Buy

Dividend Strength: Weak

Projected Earnings Growth: 52.54% ($9.46 to $14.43 per share)

Buy or Sell?

Over the past year, 39 Wall Street analysts have provided ratings for NVIDIA, including four strong buy ratings, two buy ratings, one hold rating, and one sell rating.

The consensus among Wall Street analysts is that investors should consider a “moderate-buy” for NVDA shares.

Price Forecast

According to 39 research analysts, NVDA share price forecasts range from $185.00 to $780.00, with an average target of $558.95 for the following year.

This suggests a potential upside of 27.6% from the current stock price.

Performance in 2023

At the beginning of the year, NVIDIA’s stock was trading at $146.14.

Since then, NVDA shares have seen a remarkable increase of 199.7%, currently trading at $437.96.

Earnings Date

Wednesday, November 15, 2023.

Earnings (last quarter)

In the recent earnings report on Wednesday, August 23rd, NVIDIA Co. reported earnings per share (EPS) of $2.70 for the quarter.

This surpassed the analysts’ consensus estimates of $2.08 by $0.62.

The company generated $13.51 billion in revenue during the quarter, exceeding analysts’ expectations of $11.19 billion.

NVIDIA had a net margin of 31.59% and a trailing twelve-month return on equity of 45.50%.

The firm’s revenue was up 101.5% compared to last year’s quarter.

Dividends

NVIDIA declared a quarterly dividend on Wednesday, August 23rd.

On Thursday, September 7th, investors of record received a dividend of $0.04 per share on Thursday, September 28th.

This represents a $0.16 annualized dividend and a yield of 0.04%.

NVIDIA (NASDAQ: NVDA) pays an annual dividend of $0.16 per share, currently yielding 0.04%.

The dividend payout ratio is 3.86%, indicating the potential for sustained or increased dividends in the future.

NVIDIA’s Stock Split

NVIDIA shares split on Tuesday, July 20th, 2021, with a 4-1 split ratio.

An investor holding 100 shares of stock prior to the split would have 400 shares after the split.

The Walt Disney Company (NYSE: DIS)

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Price (October 3, 2023): $79.58

Analyst Rating: Moderate Buy

Dividend Strength: N/A

Projected Earnings Growth: 38.81%

Buy or Sell?

Over the past year, 23 Wall Street research analysts have provided ratings for Walt Disney, including 18 buy ratings, four hold ratings, and one sell rating.

The consensus among Wall Street research analysts suggests that investors should consider a “moderate-buy” for DIS shares.

Price Forecast

Based on 23 research analysts, price forecasts for Walt Disney’s shares range from $76.00 to $177.00, with an average target of $113.50 for the following year.

This implies a potential upside of 41.6% from the current stock price.

Performance in 2023

At the beginning of the year, Walt Disney’s stock was trading at $86.88.

Since then, DIS stock has experienced a decline of 7.7%, currently trading at $80.17.

Earnings Date

Tuesday, November 14, 2023.

Earnings (last quarter)

In the recent earnings report on August 9th, 2023, The Walt Disney Company reported earnings per share (EPS) of $1.03 for the quarter.

This surpassed the analysts’ consensus estimates of $0.99 by $0.04.

The entertainment giant generated $22.33 billion in revenue during the quarter, slightly below analyst estimates of $22.50 billion.

Walt Disney had a trailing twelve-month return on equity of 6.45% and a net margin of 2.56%.

Quarterly revenue increased by 3.8% compared to the same quarter last year.

Market Cap and Annual Revenue

Walt Disney (NYSE: DIS) has a market capitalization of $146.69 billion and generates $82.72 billion in revenue each year.

The entertainment giant earns $3.15 billion in net income (profit) annually, or $1.23 on an earnings-per-share basis.

Advanced Micro Devices, Inc. (NASDAQ: AMD)

Price (October 3, 2023): $99.41

Analyst Rating: Moderate Buy

Dividend Strength: N/A

Projected Earnings Growth: 60.20%

Buy or Sell?

Over the past year, 30 Wall Street research analysts have provided ratings for Advanced Micro Devices, including one strong buy rating, 22 buy ratings, seven hold ratings, and no sell ratings.

The consensus among Wall Street research analysts suggests a “moderate-buy” recommendation for AMD shares.

Price Forecast

Based on forecasts from 30 analysts, price targets for Advanced Micro Devices’ stock range from $80.00 to $200.00.

This forecast is done with an average target of $136.48 for the following year.

This indicates a potential upside of 36.0% from the current stock price.

Performance in 2023

Advanced Micro Devices’ stock was trading at $64.77 at the beginning of the year.

Since then, AMD stock has experienced a 54.9% increase and is currently trading at $100.33.

Are Investors Shorting Advanced Micro Devices?

Advanced Micro Devices saw an increase in short interest in September.

As of September 15th, there was short interest totaling 30,060,000 shares, representing a 6.7% increase from the August 31st total of 28,180,000 shares.

With an average trading volume of 59,810,000 shares, the short-interest ratio currently stands at 0.5 days.

Earnings Date

Tuesday, November 7, 2023.

Earnings (last quarter)

In the recent earnings report on Tuesday, August 1st, Advanced Micro Devices, Inc. reported earnings per share (EPS) of $0.58 for the quarter.

This surpassed the analysts’ consensus estimates of $0.57 by $0.01.

The semiconductor manufacturer generated $5.36 billion in revenue during the quarter.

This slightly surpassed the consensus estimate of $5.32 billion.

Advanced Micro Devices had a positive trailing twelve-month return on equity of 5.69% and a negative net margin of 0.11%.

Year-over-year, the company’s revenue decreased by 18.2%.

In the same quarter of the previous year, the firm reported an EPS of $0.91.

Market Cap and Annual Revenue

Advanced Micro Devices (NASDAQ: AMD) has a market capitalization of $162.10 billion and generates $23.60 billion in revenue annually.

The semiconductor manufacturer reports net income (profit) of $1.32.

Warner Bros. Discovery, Inc. (NASDAQ: WBD)

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Price (October 3, 2023): $10.38

Analyst Rating: Moderate Buy

Dividend Strength: N/A

Buy or Sell?

Over the past year, 15 Wall Street analysts have provided ratings for Warner Bros. Discovery, consisting of one sell rating, three hold ratings, and 11 buy ratings.

The consensus among Wall Street analysts suggests a “moderate-buy” recommendation for WBD shares.

Price Forecast

Based on forecasts from 15 analysts, price targets for Warner Bros. Discovery’s stock range from $10.00 to $36.00, with an average target of $20.56 for the following year.

This suggests a potential upside of 98.1% from the current stock price.

Performance in 2023

At the beginning of 2023, Warner Bros. Discovery’s stock was trading at $9.48.

Since then, WBD stock has experienced a 9.5% increase and is currently trading at $10.38.

Earnings Date

Thursday, November 2, 2023.

Earnings (last quarter)

In the most recent earnings report on August 3rd, 2023, Warner Bros. Discovery, Inc. reported earnings per share (EPS) of ($0.51) for the quarter.

The company generated $10.36 billion in revenue during the quarter, slightly below analysts’ expectations of $10.44 billion.

Warner Bros. Discovery had a negative net margin of 16.04% and a positive trailing twelve-month return on equity of 1.27%.

Year-over-year, the company’s revenue increased by 5.4%.

In the same quarter of the previous year, the business reported earnings per share of ($0.11).

Market Cap and Annual Revenue

Warner Bros. Discovery (NASDAQ: WBD) has a market capitalization of $25.30 billion and generates $33.82 billion in revenue annually.

The company reports a net loss of $7.37 billion or ($2.76) earnings per share.

Take-Two Interactive Software, Inc. (NASDAQ: TTWO)

Price (October 3, 2023): $137.65

Analyst Rating: Moderate Buy

Dividend Strength: N/A

Projected Earnings Growth: 246.99%

Buy or Sell?

Over the past year, 24 analysts have provided ratings for Take-Two Interactive Software, with five hold ratings and 19 buy ratings.

The consensus among Wall Street analysts suggests a “moderate-buy” recommendation for TTWO shares.

Price Forecast

Based on forecasts from 24 analysts, price targets for Take-Two Interactive Software’s stock range from $105.00 to $170.00, with an average target of $149.15 for the following year.

This suggests a potential upside of 8.2% from the current stock price.

Performance in 2023

At the beginning of 2023, Take-Two Interactive Software’s stock was trading at $104.13.

Since then, TTWO stock has experienced a 32.4% increase and is currently trading at $137.86.

Earnings Date

Monday, November 6, 2023.

Earnings (last quarter)

In the recent earnings report on August 8th, 2023, Take-Two Interactive Software, Inc. reported earnings per share (EPS) of ($0.02) for the quarter.

This surpassed the consensus estimate of ($0.07) by $0.05.

The company generated $1.20 billion in revenue during the quarter, in line with the consensus estimate of $1.20 billion.

Take-Two Interactive Software had a negative net margin of 22.17% and a positive trailing twelve-month return on equity of 3.04%.

Market Cap and Annual Revenue

Take-Two Interactive Software has a market capitalization of $23.41 billion and generates $5.35 billion in revenue annually.

The company reports a net loss of $1,124,700,000.00 or ($7.29) earnings per share.

Sea Limited (NYSE: SE)

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Price (October 3, 2023): $42.57

Analyst Rating: Moderate Buy

Dividend Strength: Weak

Projected Earnings Growth: 3.36% ($1.19 to $1.23 per share)

Buy or Sell?

According to 18 Wall Street analysts, there are nine hold ratings, eight buy ratings, and one strong buy rating for SEA.

The consensus suggests a “moderate buy.”

Price Forecast

Looking ahead to 2023, 18 brokerages have issued price targets for SEA, with forecasts ranging from $42.00 to $115.00 per share.

The average target is $72.50, indicating a potential 69.3% upside from the current price.

Performance in 2023

In 2023, SEA’s stock decreased by 17.7%, trading at $42.83 from its starting point at $52.03.

Earnings Date

November 21st, 2023.

Earnings (last quarter)

In the last quarter, SEA reported earnings of $0.54 per share, missing estimates by $0.11, with revenue of $3.10 billion.

Dividends

SEA pays an annual dividend of $1.76 per share, but with a high payout ratio, sustainability may be a concern.

Market Cap and Annual Revenue

SEA Limited has a market capitalization of $24.19 billion. SEA generates $12.74 billion in revenue annually but reports a net loss of $1,651,420,000.00.

Electronic Arts (NASDAQ: EA)

Price (October 3, 2023): $119.24

Analyst Rating: Moderate Buy

Dividend Strength: Weak

Projected Earnings Growth: 13.31% ($5.11 to $5.79 per share)

Buy or Sell?

As per the consensus of 23 analysts, there are currently ten hold ratings and 13 buy ratings for EA, indicating a “moderate-buy” sentiment among analysts.

Price Forecast

Looking ahead to 2023, 23 brokerages have provided price targets for EA, ranging from $112.00 to $162.00 per share.

On average, they expect the stock price to reach $140.43 in the next year, suggesting an 18.0% potential upside from the current price.

Performance in 2023

In 2023, EA’s stock decreased by 2.6%, trading at $119.03 from its starting price of $122.18.

Earnings Date

November 1, 2023.

Earnings (last quarter)

In the previous quarter, EA reported earnings of $0.75 per share, exceeding analyst estimates by $0.14, with revenue of $1.58 billion.

Dividends

Electronic Arts pays an annual dividend of $0.76 per share, with a current yield of 0.63%.

However, its dividend growth track record is not yet well-established.

Market Cap and Annual Revenue

Electronic Arts has a market capitalization of $32.25 billion. The company generates $7.43 billion in annual revenue and reports a net income of $802 million, resulting in an earnings per share of $3.23.

Sony Corporation (NYSE: SONY)

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Price (October 3, 2023): $80.87

Analyst Rating: Buy

Dividend Strength: Weak

Projected Earnings Growth: 14.77% ($5.55 to $6.37 per share)

Buy or Sell?

According to two Wall Street analysts, there are currently two “buy” ratings for Sony Group shares, suggesting to buy SONY shares.

Price Forecast

Two analysts have provided price targets for Sony Group, with forecasts ranging from $102.00 to $118.00.

On average, they anticipate the stock price to reach $110.00 in the next year, indicating a potential 34.7% upside from the current price.

Performance in 2023

Sony Group’s stock started the year at $76.28 on January 1st, 2023, and has since increased by 7.1%, currently trading at $81.67.

Earnings Date

Tuesday, November 7, 2023.

Earnings (last quarter)

In the most recent earnings report on August 9th, 2023, Sony Group reported earnings per share (EPS) of $1.28 for the quarter.

This surpassed the consensus estimate of $0.94 by $0.34.

The company generated $16.65 billion in revenue during the quarter, slightly below analysts’ expectations of $18.62 billion.

Sony Group had a net margin of 8.08% and a trailing twelve-month return on equity of 13.36%.

Dividends

Sony Group pays an annual dividend of $0.42 per share, currently yielding 0.51%.

The dividend payout ratio is 7.68%, indicating a sustainable level below 75%.

SONY is expected to have a dividend payout ratio of 6.59% next year, suggesting the company can maintain or increase its dividend.

Market Cap and Annual Revenue

Sony Group (NYSE: SONY) has a market capitalization of $100.78 billion and generates $85.23 billion in revenue annually.

The company earns $6.93 billion in net income, equivalent to $5.47 per share.

Honorable Mentions

Although the stocks mentioned above are known to be the best in the gaming industry, there are also some other good ones.

Let us look at some other noteworthy gaming stocks that are worth taking into consideration.

— Tencent Holdings Ltd ADR (OTCMKTS: TCEHY)

— NetEase, Inc. (NASDAQ: NTES)

— Roblox Corporation (NYSE: RBLX)

— Zynga (NASDAQ: ZNGA)

— Glu Mobile (NASDAQ: GLUU)

— The9 Ltd ADR (NASDAQ: NCTY)

— Capcom (OTC: CCOEF)

— SciPlay Corp (NASDAQ: SCPL)

— Playtika Holding Corp. (NASDAQ: PLTK)

— Inspired Entertainment Inc.(NASDAQ: INSE)

Source

The technical information related to the stocks mentioned in this list has been gathered from the website “MarketBeat.”

Bottom Line

These gaming stocks can be an excellent way for an investor to diversify their portfolio among different industries.

However, investment requires considerable time and effort to profit from the invested capital.

It is wise to acquire the help of a financial professional to attain the best possible results from your investments.

Are you looking for an expert wealth manager who can cater to your goals and needs, you are in the right place.

Through my services, I have helped numerous expats and high-net-worth individuals achieve financial freedom.

Feel free to get back to me to find out if you could be a potential client and profit from my financial solutions.

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Adam is an internationally recognised author on financial matters, with over 735.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

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