The global video game industry is forecast to generate revenue of $159.3 billion in 2020, up 9.3% from 2019, according to Newzoo. The research firm also projects that the industry will be worth $200 billion by 2023, driven by growth in mobile, PC, and console gaming.
With the industry expected to continue growing at a rapid pace, we've identified the four most watched gaming stocks that investors should keep an eye on in 2023. These companies are well-positioned to capitalize on the secular growth trends in the gaming industry and generate strong returns for shareholders.
Activision Blizzard is one of the most watched gaming stocks due to its strong portfolio of popular franchises. Its games include "Call of Duty," "World of Warcraft," "Overwatch," and "Candy Crush." The company has been able to grow its revenue and earnings at a double-digit pace in recent years, and it is expected to continue to do so in the future. Wall Street analysts expect the company's earnings to grow by 18% in 2023. The stock is currently trading at a price-to-earnings ratio of 33.5, which is relatively high compared to its historical average. However, given the company's strong growth prospects, many analysts believe the stock is still undervalued.
EA is one of the most well-known gaming stocks and for good reason. The company has a long history of success with popular franchises like Madden, FIFA, and The Sims. EA also owns popular game studios like Respawn Entertainment and DICE. In recent years, the company has made a big push into mobile gaming with hits like Star Wars: Galaxy of Heroes and Plants vs. Zombies. EA is also one of the few gaming stocks that pays a dividend, which makes it a favorite among income investors. While the stock isn't cheap, it could still be a good long-term investment.
Take-Two Interactive (TTWO) is one of the most popular gaming stocks and it is also one of the most watched gaming stocks in 2023. The company is best known for its Grand Theft Auto franchise. Take-Two has a market capitalization of over $27 billion and it is one of the largest gaming companies in the world. The company also has a strong presence in the mobile gaming market with its popular NBA 2K franchise. Take-Two is expected to continue to perform well in the gaming industry and it is one of the most watched gaming stocks in 2023.
Ubisoft is a French video game company that was founded in 1986. The company has published some of the most popular video games of all time, including the "Assassin's Creed" and "Tom Clancy's Rainbow Six" franchises. Ubisoft also owns the "Just Dance" franchise, which is the best-selling music video game series of all time. The company's stock is up over 50% in the past year, and it is one of the most watched gaming stocks in 2023.