|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||33.99 - 34.41|
|52 Week Range||31.38 - 57.78|
|Beta (3Y Monthly)||1.69|
|PE Ratio (TTM)||23.64|
|Forward Dividend & Yield||0.37 (1.04%)|
|1y Target Est||73.46|
Streaming has a major new entry in the video game platform battle for players' time and dollars.
Google is leveraging Advanced Micro Devices (AMD) Radeon datacenter GPUs customized for Stadia cloud-based game streaming service.
[Editor's note: This story was originally published in November 2018. It has since been updated and republished to coincide with today's rout in video game stocks.]If you're looking for an investment sector that is very likely to rise higher, video game stocks are your ticket. The concept of the video game has evolved from nerdy niche to mass mainstream infiltration. Still, powerful fundamental tailwinds haven't prevented video game stocks from absorbing huge losses.Indeed, anywhere you look, the major (and minor) indices are flashing red. The broader markets finished 2018 down 6.2%, and our own Dana Blankenhorn, in November 2018, stated bluntly "we're already in a bear market." Any contrarian analyst would be hard-pressed debating Blankenhorn on this issue as the volatility persists into 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm certainly not going to attempt it, especially if I'm looking at esports and gaming stocks. The video game as an investment vehicle is a platform that has profited many investors handsomely over the years. Unfortunately, the declines in video games and esports stocks over the past year have forced everyone to rethink their assessments.I can't deny the obvious: This is a time when all market participants should strongly consider protective measures. We have many factors that are completely unrelated to video games but could end up roiling video game stocks. However, I'd also caution against overreactions. Recall that the Dow Jones lost double digits between late January and early February of 2018 … * 7 Invincible Stocks Leading The Bull Market Higher The point is to protect yourself from this violent storm, but also to realize that all storms eventually fade away, producing excellent deals only in hindsight. If you've got the nerve, here are seven video game stocks on serious discount. Sony (SNE)Source: Dalvenjah via FlickrWhen you think about the modern video game, you immediately think about Sony (NYSE:SNE). Admittedly, SNE stock has become a running joke within consumer-electronics circles for the underlying firm's other endeavors. For instance, its smartphone is nowhere near as popular as Apple's (NASDAQ:AAPL) iPhone, and it once ran a computer-monitor business.But don't ever question SNE stock for its part in advancing the video game to the mainstream.Its PlayStation console resonates deeply with consumers, and better yet, it keeps improving. Just a few days ago, Sony announced during the Consumer Electronics Show (CES) that the current-generation PlayStation 4 hit 91.6 million unit sales. More impressively, this tally occurred over roughly a five-year lifespan.Of course, the markets don't typically respond to past achievements. What makes SNE stock so compelling for the video game industry is corporate synergy. Make fun of Sony all you want, you can't deny its vast entertainment portfolio. Management can easily leverage this for exclusive titles, which they do frequently for marquee brands. Microsoft (MSFT)Source: Shutterstock Every great organization has an equally great competitor. In the war of supremacy for the video game, we have two top console-makers: Sony and Microsoft (NASDAQ:MSFT). The rivalry between the two tech giants is no joke for many gaming enthusiasts.Microsoft stopped reporting sales figures for its Xbox console, which understandably drew snide snickering, but estimates put it around the 40 million mark. Based on this, Sony is vastly outpacing Microsoft in the console wars. But that hasn't stopped MSFT stock from making significant gains in the markets.Part of the reason is that in terms of graphics and gameplay capabilities, Microsoft has largely gone toe-to-toe with Sony. Additionally, the house that Bill Gates built features its own batch of attractive exclusive titles, including the ultra-popular "Halo" series. Naturally, this has encouraged long-term investors to pile in on MSFT stock. * 10 Companies That Could Post Decelerating Profits And while I'm a Sony guy, I think Microsoft offers better overall stability. Along with its video-game business, it has a virtual lockdown on PC operating systems and various pieces of professional software. Plus, MSFT stock pays a much higher dividend, which isn't something to ignore at this juncture. Nintendo (NTDOY)Source: Shutterstock In my opinion, and those of fellow gamers, the architect of today's video game is Nintendo (OTCMKTS:NTDOY). However, other video game stocks have captured investors' attention. Moreover, as a Japanese over-the-counter name, NTDOY stock doesn't always generate positive news.That has proven especially true in 2018. Last year, NTDOY stock returned handsome monetary rewards for shareholders thanks to the Nintendo Switch. This spectacular console is actually a hybrid device. Nintendo designed the Switch primarily for home usage, but you can just as easily take it on the road. However, great news becomes old news quickly, and shares faltered.Still, the scope of the damage seems excessive. Over the past year, NTDOY stock has dropped a staggering 30%. While further losses are not out of the question due to the overall market panic, the bears are overlooking the company's long-reaching brands. For instance, the "Mario Bros." franchise is gaming gold, which Nintendo can leverage for profitable synergies. Electronic Arts (EA)Source: Shutterstock For anybody who has picked up a video game in the last decade, chances are, you fed the Electronic Arts (NASDAQ:EA) cash cow. From developing games for the Commodore Amiga -- does anybody remember that? -- to driving the latest innovations in esports, EA stock is a mainstay within the industry.That said, video game stocks have incurred horrific losses, and Electronic Arts was not spared in any way, shape or form. Since July 25, EA stock has hemorrhaged more than 43% of market value. Some of that was due to the poor outlook given in its first-quarter fiscal 2018 earnings report. But later losses stemmed from internal issues, such as the delayed launch for its heavily-anticipated video game Battlefield V.I understand why investors are now hesitant on EA stock. A few months ago, I provided my analysis on the company's extreme volatility. That said, my ultimate take is that Electronic Arts suffers from fixable problems. * Mizuho: 7 Long-Term Value Stocks to Buy Now Moreover, they leverage an enviable sports-licensing franchise. No matter what happens, throngs of gamers always eagerly await the latest iteration in the Madden or FIFA series. On the surface, such fandom seems irrational because the changes are minute. Still, the consumers are shelling out big bucks every year, so who am I to judge? Activision Blizzard (ATVI)Source: Shutterstock One of the biggest reasons why the video game industry has captured mainstream attention is the proliferation of the online shooter genre. And in this genre, no one does it better than Activision Blizzard (NASDAQ:ATVI).Over the last few years, ATVI stock has skyrocketed based largely on its Call of Duty franchise. Rather than being shunned by the real heroes in uniform, our military forces embrace these games. Earlier last year, Activision announced that it donated more than $100,000 worth of Call of Duty games to the United Service Organizations, or USO.However, like Electronic Arts, ATVI stock incurred heavy losses in the markets. Since the close of Oct. 1, Activision shares have tanked 40%. A major culprit is fierce competition, particularly from Epic Games' Fortnite.In the long-term, though, ATVI stock looks very intriguing. Over a year-and-a-half of market gains was wiped out in less than two months' time. That's a little bit over the top considering that the company levers one of the most popular franchises among video stocks. Nvidia (NVDA)Source: Shutterstock Semiconductor firms like Nvidia (NASDAQ:NVDA) started to light up the markets in 2016, and that momentum continued into last year. Unfortunately, we learned a physics lesson with NVDA stock: what goes up must come down.And shares are doing exactly that. What appeared to be a promising start for 2018 turned into a veritable nightmare. Between the January opener and the end of September, NVDA stock gained nearly 44%. Since the beginning of October, however, the company has tumbled over 48%, finishing the year down 31%.As a leader in advanced technologies, Nvidia took the brunt of the sector fallout. The geopolitical wrangling between the U.S. and China isn't helping matters. Plus, the severe plummeting in bitcoin prices is likely to negatively impact its crypto-mining-specific graphics processing units, or GPUs. * 7 Stocks to Buy That Are Run By Billionaires Nevertheless, I really like NVDA stock, especially at these prices. I'm not the only one, as notorious short-sellers Citron Research just recently reversed their bearish take on the company. While you shouldn't rush in simply based on one expert opinion, Nvidia offers exposure to multiple next-gen businesses. I doubt that NVDA will stay deflated for long. GameStop (GME)Source: Shutterstock In following with my usual routine of sticking speculative names in the back, I bring to you GameStop (NYSE:GME). GME stock is easily one of the riskiest investments among video game stocks. The company pays out a near-10% dividend, which tells you all you need to know.The other reason that GME stock is down -- aside from all the terrible factors that slammed valuations -- is related to its PR crisis. Many gamers hate GameStop because the retailer rips off customers who are looking to trade in their games and paraphernalia.That's true, but at the same time, you can't have it both ways. The reason why other gamers love GameStop is due to their extensive library of preowned products. In my opinion, it's far superior to online sales and subscription-based services due to its easy return policy: if you don't like a particular video game, just return it.This return policy is a major but underappreciated benefit for GME stock because many gamers are young. They (or their parents) may not have the funds for subscription services. GameStop gives these customers better pricing and superior flexibility.As of this writing, Josh Enomoto was long SNE and bitcoin. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post 7 Video Game Stocks on Steep Discount appeared first on InvestorPlace.
Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google division took the wraps off its streaming gaming platform at a GDC 2019 keynote on Tuesday. Formerly known by the code names Project Stream and Project Yeti, the new game service is called Stadia, and it will launch later in 2019. While Alphabet stock was up a percent or so, the big winners appear to be companies that will be needed to support Stadia. Game developer Activision Blizzard (NASDAQ:ATVI) notched a 3.22% boost, while chip maker Advanced Micro Devices (NASDAQ:AMD) shot up nearly 12% after the announcement.Source: Google Stadia has the potential to be a game changer (no pun intended) but the real winners in the short term are going to be the companies that Google needs to lean on to make its game streaming platform happen. Googles Announces Stadia "The Future of Gaming"Leading up to yesterday's Game Developer Conference keynote, we had a pretty good idea of what Google was up to. After all, the company had publicly trialled the experience of playing AAA video games in a browser with its Project Stream, which wrapped up earlier this year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 of the Best Stocks to Buy Under $10 Google's keynote was all about what it has been describing as "the future of gaming," which now has a name and a launch timeframe. Stadia is the official name of Google's new game streaming platform, and the company says it will launch later in 2019 in the U.S., Canada and Europe.Stadia will let players stream video games over the internet to devices running the Chrome web browser, through a Google Chromecast or to a Google Pixel device. No console or gaming PC is required, which would cut costs considerably for players. The company is also releasing a Stadia game controller that links to the service directly over Wi-Fi, and has buttons dedicated to YouTube and Google Assistant. Speaking of Youtube, Google says you'll be able to watch gameplay on its popular video-sharing service, push a button and instantly be able to play the video game.Stadia will require a 25Mbps internet connection and promises 4K resolution at 60fps, with plans to eventually offer up to 8K resolution and up to 120fps. WinnersThe global video game industry was worth $138 billion last year, and it's growing. If Stadia can grab a chunk of that, there is a real payoff for Google, which is why Alphabet stock nudged up 1.17% on the announcement. There is also the potential for game developers to sell to a wider audience, and Google says over 100 game studios already have Stadia development kits. Some game development companies got a serious boost from the Stadia announcement, including Activision Blizzard. Ubisoft Entertainment (OTCMKTS:UBSFY) -- the publisher of Assassin's Creed Odyssey, which was the game tested with Project Stream -- also saw a 2.99% bump.The big winner for now though is AMD. To launch Stadia, Google says it is investing in custom GPUs from AMD for its data centers. That's a big, exclusive hardware sale with the potential to keep going well beyond the launch. LosersWhile some game developer stocks saw a boost from Google's announcement, there is also uncertainty in the industry. Google is creating its own game studio to release Stadia-exclusive titles and that means competition. Developing for yet another platform means additional costs. Some video game console makers also took a hit. Microsoft (NASDAQ:MSFT) held steady, but Sony (NYSE:SNE) and Nintendo (OTCMKTS:NTDOY) both closed down over 3%. GameStop (NYSE:GME) has a lot to lose if gaming ditches physical discs for streaming, and it took a 0.99% hit on the day. * 7 Invincible Stocks Leading The Bull Market Higher What was missing from Google's Stadia announcement? Besides Doom Eternal -- which will also be available for PC, Xbox One and Nintendo Switch -- details on launch titles were thin. Also missing was the cost. We're assuming Google will charge a monthly subscription fee for access to Stadia, and that the optional controller would be sold separately, but there has been no confirmation. What we know now is that Google is angling for a larger cut of the $138 billion video game industry, in a big move that may have significant upside for Alphabet stock. In the meantime, Stadia partners like AMD are reaping the benefits as Google spends to build out the service, while console makers and game sellers watch to see if their business faces a real threat.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post AMD Stock Rockets on Google Stadia Announcement appeared first on InvestorPlace.
Japan's Nikkei eked out small gains on Wednesday as investors awaited the outcome of a Federal Reserve policy review, while Sony and Nintendo tumbled on news that Google is starting a gaming business. Traders said investors remained cautious before the Fed's policy decision, with many expecting the central bank to reaffirm its dovish stance.
Nintendo dropped as much as 4.6 percent and Sony declined 4.5 percent Wednesday, the biggest intraday drop for both stocks in six weeks. Stadia lets developers put games on a streaming platform that will allow players to access the action through the web, skipping expensive consoles or personal computers, Google announced at the Game Developers Conference in San Francisco.
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? On this day in 1985, Capital Cities Communications bought American Broadcast Companies ...
Should investors consider buying Microsoft (MSFT) stock at new all-time high as the company expands its cloud computing and IoT businesses, while maintaining its influence over the personal computer market?
Nintendo (OTCMKTS:NTDOY) stock continues to fall. The sales growth of its Switch console and many of its games would seem to help the company. Still, Nintendo stock has failed to gain traction and now appears positioned to fall back to 52-week lows. NTDOY stock trades at an attractive valuation and follows a strategy that can bolster its long-term success. However, due to lagging sales in the overall sector, Nintendo stock remains a victim of its industry. * 15 Stocks Sitting on Huge Piles of Cash Nintendo Will Bring Virtual Reality to SwitchSource: Shutterstock Nintendo just announced the creation of a virtual reality (VR) headset for its popular Switch console. The company will release this headset on April 12. This cardboard headset will cost $80, and it comes with an alien shooter game. This is the company's first crack at VR since it released the Virtual Boy in 1995. This comes in much less than the $300 VR headset Sony (NYSE:SNE) released for its PlayStation gaming console. The interesting thing about the VR headset is it reaffirms Nintendo's commitment to consoles. While it produces smartphone-based games, Nintendo designs them to spark interest in console games. The company has even gone so far as to discourage partners from charging customers excessive fees to speed up gameplay or win special characters on its smartphone games. Console Strategy Makes SenseAdmittedly, the company's strategy seems like a negative for Nintendo stock at first glance. Players will sometimes spend hundreds or even thousands of dollars on such upgrades. Discouraging some of these fees appears to sabotage a lucrative revenue stream.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlso, as viewing has diversified away from televisions, video game console sales have steadily declined since the early 2000s. Recreational game players tend to gravitate toward devices. On the other end, competitive players prefer PC-based gaming for its speed. Hence, a commitment to consoles seems counterintuitive.However, Nintendo's console connects to tablet consoles just as easily as to a television. This makes it both portable and conducive to multi-user play. Also, tablet compatibility increases the likelihood consumers will buy more than one Switch per household. This can compensate for the revenue lost from charging fewer fees on smartphone-based games. Strategy Will Help Nintendo StockI think Nintendo has made a wise decision by questioning the fee for play strategies that drive many gaming companies. If the airline industry serves as an indicator, excessive fees charged by airlines other than Southwest (NYSE:LUV) have stoked resentment. Avoiding the "fee for everything" approach has not hurt Southwest stock. I do not think it will hamper Nintendo stock either.Sales figures also appear to validate this strategy. In January, videogame sales fell 19% on a year-over-year basis. The Nintendo Switch was the only platform to see growth amid the decline.Also, Nintendo currently sells three of the ten best-selling games. Only Take-Two (NASDAQ:TTWO) currently matches this feat. Drawing on long-time franchises has helped. InvestorPlace contributor Bret Kenwell considers Nintendo the Disney (NYSE:DIS) of the video game industry, as it has kept franchises such as Mario Bros. popular for decades. When Is the Right Time to Buy Nintendo Stock?So, where does that leave Nintendo stock? The 23 price-to-earnings (PE) ratio comes in well below historical averages. Yes, both Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:EA) support slightly lower multiples. Still, I like the innovation I see from Nintendo, so I do not think this valuation should discourage buyers.The only reason I see not to buy NTDOY stock right now pertains to the direction of the Nintendo stock price. The equity has traded in a range over the last few months. It fell to a 52-week low of $31.38 per share on Christmas Eve. It then rose above $39 per share in January before falling back. Today, it trades at just above $33 per share. * 10 National Pi Day Deals to Grab on 3.14 As sales declines have hit the entire industry, NTDOY has fallen along with other gaming stocks. Until we know the Nintendo stock has established a firm bottom, I do not recommend buying. However, the new VR headset should help revenues and conditions for an eventual recovery remain in place. Once it begins to trend upward, I think Nintendo can reach and surpass its $57.96 per share high.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post To Move Higher, Nintendo Stock Needs Only a Switcha¦ in Direction appeared first on InvestorPlace.
With a market value of just over $874 billion, Microsoft (NASDAQ:MSFT) is the largest U.S. company by market capitalization. Over the past year, Microsoft stock is up 15%, or nearly quadruple the gains of the Nasdaq-100 Index, of which Microsoft is a marquee member.Source: Shutterstock A 15% gain in 12 months for a company the size of MSFT does not go unnoticed and that performance can give investors pause about getting involved with Microsoft stock over the near-term.While those concerns and concerns pertaining to valuation are legitimate, MSFT stock can credibly command higher multiples relative to similarly mature technology companies because it has the growth catalysts to back up those multiples.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"We see wide-moat Microsoft as an attractive investment opportunity throughout 2019, as there are very few companies the size of Microsoft that can offer 12% revenue growth and 15% earnings growth in each of the next several years," said Morningstar in a recent note. "With shares hovering around $111, we see more than 15% upside to our $130 fair value estimate." Microsoft Stock: 'To the Cloud'A while back, Microsoft had a quirky advertising campaign where the catchphrase was "To The Cloud." Some critics panned the commercials for being light on relevant cloud computing content and points, but Microsoft was onto something. Today, the company is a leader in cloud computing and Microsoft stock is benefiting.Cloud revenue for Microsoft's recently reported fiscal second quarter grew to $9 billion, equaling a run rate of $36 billion, up from $34 billion in the company's fiscal first quarter. * 10 Dividend Stock Winners "We estimate Azure is approximately a $7 billion business and it still grew by a staggering 76% year over year in the December quarter," said Morningstar. "The battle for cloud supremacy has become a two-horse race between Azure and AWS (Amazon Web Services), and Azure is well-positioned given its installed base at enterprise customers with Server, Database, Dynamics, and Office. Enterprise clients are increasingly adopting a hybrid cloud environment, which plays into Microsoft's strong position, as the company can offer customers their existing environment in either public cloud or on premise flavors."By some estimates, Azure sales could reach $26.4 billion through fiscal 2021 and some market observers believe the cloud could replace Windows as Microsoft's primary area of emphasis. That justifies the premium MSFT stock commands over rivals, such as Apple (NASDAQ:AAPL), International Business Machines (NYSE:IBM) and Oracle (NYSE:ORCL)."At 25.5x forward earnings, they trade at a significant premium to its rivals Oracle (14.4x), IBM (10.1x) and Apple (15.2x)," reports Forbes. "This premium is largely justified. Microsoft has stronger prospects and a more secure stream of future revenues." Gaming, TooWhile MSFT's biggest revenue drivers are mainly business-to-business products, but with Xbox, the company is a major player in the booming video game arena. While Xbox and related fare are unlikely to usurp Azure and Windows as Microsoft revenue drivers, video game exposure is a nice compliment to Microsoft stock's growth prospects."The gaming side of this company, the ability to move it all on to subscription service and become a ubiquitous platform globally in gaming is a potential that not many people talk about yet the company continues to move in that direction," said "Shark Tank" star Kevin O'Leary in a mid-2018 CNBC interview. "I think that's why this stock will actually expand its P/E in the next year. It will start to trade as something different than a dino tech that it used to be."In what could be a modest catalyst for Microsoft stock, the company is expected to reveal plans for cross-platform partnerships, including making games available on Nintendo's (OTCMKTS:NTDOY) Switch and making Xbox Game Pass available to users of Sony's (NYSE:SNE) PlayStation 4. * 7 Dark Horse Stocks That Deserve Your Attention in 2019 Last year, Microsoft completed multiple acquisitions to bolster its video game studio. By revenue, Microsoft is estimated to be the fourth-largest video game company. DividendsMSFT stock is a dividend stock and with the company's low yield (1.65%) and massive cash position, there is room for the stock to be a dividend growth stock. At the end of last year, the company had $127.66 billion in cash and short-term investments on hand.Microsoft already is a dividend growth story. Microsoft stock currently has a quarterly dividend of 46 cents a share. That is up from 42 cents a share for the three first quarters of last year and nearly triple the 16 cents a share per quarter the company paid in 2011.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post Should You Buy Microsoft Stock in March? appeared first on InvestorPlace.
When it comes to trading shares of Nintendo Co., they’re turning to a tiny research shop in a corner of Tokyo better known for used booksellers and guitar stores. Media Create Co. is the brainchild of Atsushi Hosokawa, a 63-year-old who got his start cold-calling video-game stores for information. Last year, the company showed shipments of Nintendo’s portable Switch console weren’t growing as quickly as expected, helping make millions for clients who shorted the stock before the game maker cut its shipment target in January.
It's been a super volatile run, not just for Electronic Arts (NASDAQ:EA), but all of the video game stocks. Just a day after getting hammered on disappointing earnings, Electronic Arts stock began to climb aggressively on positive chatter surrounding its new game, Apex Legends. That chatter has only gotten better, with the game now eclipsing 50 million users in just 30 days.Source: Electronic ArtsIt's helping EA outperform its peers like Take-Two Interactive Software (NASDAQ:TTWO) and Activision Blizzard (NASDAQ:ATVI). The latter of those two, Activision, has just about everything going wrong for it. Conversely, TTWO has some solid momentum from its top game Red Dead Redemption 2, while EA has the most momentum at the moment. The question is, can that momentum continue? * 5 Airline Stocks In Serious Trouble How Far Can Apex Legends Go?Recently video game stocks hit a "perfect storm" of negative catalysts. First, they came into the fourth quarter red-hot, with many trading at or new all-time highs. Around the same time, Chinese regulators began censoring which video games the public could play and given the size of that market, it put a damper on video game stocks. Further, Nintendo (OTCMKTS:NTDOY) was riding strong Switch momentum.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFinally, and perhaps most problematic, Epic Games (40% owned by Tencent (OTCMKTS:TCEHY)) was disrupting the world with its Fortnite game, which hit 200 million users across all of its platforms before the end of 2018.That's exactly the response that Electronic Arts is looking for with Apex Legends. Or even more. With the game's 50 million users in 30 days, EA is outpacing the initial growth from Fortnite. If that growth can continue and if EA can eclipse the 100 million mark before the second half of 2019, investors will bid up Electronic Arts stock even more.While games like Apex Legends and Fortnite don't generate revenue on the initial sale of the game, they do generate revenue with low-priced in-game purchases. Many gamers loathe micro-transactions, but they are much more willing to shell out $2 here and $5 there if they didn't have to pay for the game to begin with.Getting 100+ million users on board and then living off micro-transactions isn't the worst business plan in the world. In fact, it's simply a digital version of the old razor/razor blade model. If Electronic Arts can gain traction with Apex Legends, EA stocks can gain traction too. The Bottom Line on EA StockNot everyone is aboard the Apex Legends train. There are a lot "ifs" still out there and concerns over its longevity. Cowen analysts point out that gamer interest is waning, with streaming on Twitch (owned by Amazon (NASDAQ:AMZN) now) falling from ~271.2K viewers to just 132.3K viewers. Conversely, Fortnite has increased from 114.6K to 149.9K.That said, Baird analysts say that with Apex Legends' 50 million active users and average revenue per user of $20, that it could join Fortnite as the only two free-to-play games to hit $1 billion in sales in their first 12 months.That's pretty solid and if the developers can keep interest levels high among gamers, it can garner even more momentum. Trading EA Stock Click to EnlargeA look at the chart above shows just how volatile of a ride it has been for EA stock. After falling from ~$93 to sub-$80 after earnings, EA eclipsed $100 just three days later, a rally of more than 25%! The stock has worked its way lower in recent weeks, as Electronic Arts digests the big move higher.Negative headlines about Apex Legends and other industry developments will likely weigh on EA. Conversely, positive headlines will aid the stock price. I don't like trading headlines, such as with Fed announcements or the trade situation between China and the U.S.,but that's the situation we have right now with EA.Should Electronic Arts stock fall below $92.50, I really want to see $90 hold. Both the 50-day and 100-day moving averages are near this mark and maintaining above this area would be encouraging. North of $90 and $93 also keeps EA above key Fibonacci retracement levels from the post-earnings range as well.Over short-term downtrend resistance (purple line) and the bulls can gather some momentum. Below $90 and some red flags will start to pop up on the charts.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post EA Stock Will Flourish Surge with Its Apex Legends Game appeared first on InvestorPlace.
When we first reviewed the Nintendo Switch back in 2017, reviewer DevindraHardawar declared it was "unlike any system we've seen before
The device is for use with the Switch console and is Nintendo's first foray into VR since it release the Virtual Boy in 1995.
The Nintendo Switch is no Wii U -- we knew that much when we reviewed it on March 1st, 2017. Its portable design lets you play your games anywhere, and it seamlessly turns into a home console when you dock it, something that still feels magical today. Best of all, you can hand off one of its controllers to a friend for some quick head-to-head action. While Sony and Microsoft chased the specter of high-end 4K gaming, Nintendo, once again, took a different path -- one that ultimately led to its most innovative console yet. It's still not perfect, but Nintendo managed to fix most of the complaints, like a lack of titles and no real online service, from our initial review. And it also showed us a few surprises along the way.
With the aim of reviving sales and building solid business that is capable of driving future capacities, Mattel (MAT) makes efforts to enhance its board.
The Nintendo Labo VR Kit lets gamers build a headset mostly out of cardboard so that they can slide in the device to create what the company calls “basic VR technology.” It’s reminiscent of Google’s Cardboard, which turns smartphones into VR goggles and was introduced almost five years ago. Priced at $80, Nintendo’s VR kit includes an alien shooting title and an ocean swimming simulation. “We wanted to design an experience that encourages both virtual and real-world interactions among players,” Doug Bowser, Nintendo of America’s chief, said in a statement Thursday.
TOKYO—Smartphone game makers working with Nintendo Co. are finding the home of Mario the plumber is putting up obstacles to scoring high revenue. Since 2015, Nintendo has had revenue-sharing agreements for smartphone games that it creates with partners like DeNA Co. The games are free to download but players can pay for enhancements to speed up game play or enter in-game lotteries to win special characters. Fearing such behavior will damage Nintendo’s brand image, the company has asked its partners to adjust the games so that users won’t spend too much, according to people familiar with Nintendo’s strategy.
Nintendo is adding a pair of vintage NES games to its Switch Online library next Wednesday. Starting on March 13th, you'll be able to play Kid Icarus andStarTropics on the online service. Kid Icarus, which was released in North America in 1987, has assembled a sizeable cult following over the years and fans have called for a sequel.
Mar.10 -- Hedge funds will look almost anywhere for an edge. When it comes to trading shares of Nintendo Co., they’re turning to a tiny research shop in a corner of Tokyo better known for used booksellers and guitar stores. Yuji Nakamura reports on "Bloomberg Daybreak: Asia."
In today's top stories, Huawei says a ban on the sale of some of its products is unconstitutional and aims to prove it in court. Meanwhile, Nintendo has a new kit to take the Switch to another dimension.