Stock Picks
Its all about gaming this week with new stock additions, Roblox Corporation (RBLX) and Global X Video Games & Esports ETF (Hero) which could continue to impress and rack in new high scores.
EasyResearch looks at 2 gaming stocks to get your week going!
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on EasyEquities USD
Robolox, the online gaming company went public last week via direct listing and ended its first day with a bang. The company’s share price shot up 54% to close at $69.50 on its first trading day. Robolox is a gaming platform primarily aimed at kids has seen its growth accelerate during the pandemic lockdown and could continue well after. This is not your average gaming platform, “Roblox is not a game developer but provides a platform for developers and creators to build 3D experiences and games for its virtual community that interacts using avatars.” -capital.com
The gaming platform has seen revenue rise by 82% last year while its operating loss nearly doubled. “The company is investing heavily in research and development as it hires employees and develops new features and functionalities for the platform to drive future growth.” - Evan Niu, CFA
Another vote of confidence is that Cathie Wood is also getting in on the action and the ARK Next Generation Internet ETF scooped up around 520 000 shares of Robolox.
Global X Video Games & Esports ETF (Hero)
The Global X Video Games & Esports ETF gives the gaming investor a cost-effective way to diversify across the video gaming universe. “The Global X Video Games & Esports ETF (HERO) seeks to invest in companies that develop or publish video games, facilitate the streaming and distribution of video gaming or esports content, own and operate within competitive esports leagues, or produce hardware used in video games and esports, including augmented and virtual reality.” – Global X
(Hero) has given a 97.59% return over the las year and has grown its Assets Under Management (AUM) to over $787 million. Some of the ETF’s top holdings include Sea Limited, Activision Blizzard, Nvidia, Electronic Arts Inc and Nintendo.
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on EasyEquities USD
Informed decisions
Gaming has exploded over the last couple of years and has gained even more traction during the pandemic lockdown which has seen valuations in this sector skyrocket. Whether Robolox and other pandemic beneficiaries can continue their current trajectory might be unlikely as the current landscape normalizes, but we will have to wait and see.
New to investing
and want to learn more about Gaming stocks and our recent New Instruments?
Read: When Goliaths meet and New Instruments 2021
Sources –EasyResearch, Global X, The Motley Fool, Yahoo finance, Koyfin, SeekingAlpha
Follow Barry Dumas
@BEEF_FINMARKETS
Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
