Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Activision Blizzard vs. EA: This Is the Better Video Game Stock
https://moneymorning.com/?p=1182280
Required Please enter the correct value.
Twitter
Stocks: ATVI, EA

Activision Blizzard vs. EA: This Is the Better Video Game Stock

By Money Morning Staff Reports, Money Morning • June 29, 2021

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Video gaming got an unexpected catalyst in 2020 thanks to the pandemic, and it's not going to slow down from here.

That has investors eyeing video game stocks like Activision Blizzard Inc. (NASDAQ: ATVI) and Electronic Arts Inc. (NASDAQ: EA) as ways to profit from this growing trend.

As millions of Americans were locked down because of the coronavirus, people turned to gaming as a way to pass the time. Esports leagues have been growing and only got bigger as live sports were delayed or cancelled. And just in time, a new wave of consoles made it to retail store shelves.

Like so many other changes in our lives caused by the pandemic, video games are not going to go backward. In fact, most experts think the industry will continue to grow at a high rate for years.

New developments like 5G and virtual reality will allow game designers to push the edge and design games that draw even more players to the industry. Fortunes will be made by those who invest in the industry leaders and innovators today and hold on for the wildly profitable ride coming.

The two largest pure-play video game companies in the United States right now are Activision Blizzard and Electronic Arts, and investors are right to be targeting these companies. They are essentially pick-and-shovel plays for the whole industry. Both have catalogs of massive hits and are constantly working to develop new ones.

Both are making smart acquisitions that will keep them at the forefront of the video gaming revolution for a long time.

But one stock stands out as the best gaming stock to own...

Why Activision Blizzard Stock Nudges Ahead of EA Stock

Electronic Arts has some of the biggest games in the industry. It owns games with huge audiences like Battlefield, FIFA Soccer, Madden NFL Football, and Apex Legends. These games are staples with new versions created routinely - at least annually in the case of the sports games.

The numbers are staggering. The FIFA Soccer game has had 100 million players.

Apex Legends has over 100 million as well, with 12 million of these active on a weekly basis.

A PORTFOLIO "GOLD MINE"

Our chief investment strategist says 2021 could be a gold mine for Americans - and these 5 stocks are "screaming buys."

Watch Now

A PORTFOLIO "GOLD MINE"

Our chief investment strategist says 2021 could be a gold mine for Americans - and these 5 stocks are "screaming buys."

Watch Now

The Madden NFL game has more than 10 million regular users.

In 2022, Electronic Arts is releasing its new golf game that will be the only game that allows players to play The Masters Tournament, PGA Championship, U.S. Open Championship, and The Open Championship, the PGA Tour's four major championships.

It is also expecting to release the newest version of the Battlefield franchise, a combat fighting game known for its online multiplayer contests.

It also has the Star Wars franchise now and will be releasing the latest game, titled Star Wars Battlefront, later this year.

Altogether, the company does almost $40 billion in revenue and is expected to grow earnings by 24% over the next five years.

Activision Blizzard also has a catalog of monster hits. Its offerings include War of Warcraft, Diablo 3, StarCraft, and even Call of Duty. It also owns King Gaming, the developer of the wildly profitable Candy Crush series of mobile games.

Its mega-hit, Call of Duty, has over 100 million monthly users and generated over $3 billion in revenue last year.

World of Warcraft has more than 5 million monthly users and is one of the largest grossing video games of all time.

The esports leagues focusing on Call of Duty and Overwatch have continued to perform well.

At King Gaming, revenue grew by 22% last year, reaching over $2 billion last year.

To continue delivering top-selling content, Activision intends to hire 2,000 developers over the next two years.

Activision Blizzard has had revenue of almost $80 billion over the last year. It isn't done growing, and analysts expect the company to increase profits by more than 15% annually for the next five years.

Technically, the two stocks look pretty much the same. The recent round of profit-taking has pushed both stocks below their 50-day moving average, and they are nearing significant support of the 200-day moving average.

Ideally, we would suggest buying both Activision and EA stocks to take advantage of the growth wave that is expected for video game companies over the next decade.

If all things were equal and we had to pick just one, it would be Electronic Arts as the smaller company with higher expected revenue growth. If that were your choice, it would be hard to find fault with your decision.

However, all things are not equal. As the stock has pulled back in recent weeks, we have seen insiders buying Activision Blizzard stock, particularly by insider Peter Nola. Mr. Nolan is an advisor to a leading private equity firm, Leonard Green and Partners, and is the firm's former managing partner.

When a director who has a successful track record as an investor and business owner is buying the stock, we have to give that company the edge.

Activision Blizzard stock is our pick if you can only choose one.

Three Stocks Even Better Than ATVI

Chief Investment Strategist Shah Gilani just held his first-ever stock-picking lightning round event - running through more than 50 stocks to tell you if they are stocks to buy or stocks to sell.

Dozens are overpriced and overhyped - you should ditch them ASAP.

But Shah says THESE three stocks are "screaming buys."

All three are trading at a discount... they're under-the-radar companies most people haven't even heard of... and they have massive tailwinds ready to send their share prices into the stratosphere.

To get the company names, tickers, and price targets for Shah's picks, go here now.

Follow Money Morning on Facebook and Twitter.

profit watch now

The Top Four "Fractional Share" Stocks to Buy Right Now

Anyone can get in on the best stocks on the market by buying fractions of shares. Buy these before market close TODAY.

Get the Picks

profit watch now

The Top Four "Fractional Share" Stocks to Buy Right Now

Anyone can get in on the best stocks on the market by buying fractions of shares. Buy these before market close TODAY.

Get the Picks

7 Stocks to Sell Immediately

These popular stocks have hit their peak - get their tickers so you can take your profits and move on.

Access Now

7 Toxic Stocks to Sell Immediately

These popular stocks have hit their peak - get their tickers so you can take your profits and move on.

Access Now

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz