As a college student who is highly interested and involved in the gaming industry, I figured it was time to put my money where my expertise is, and invest in gaming stocks.
I recently decided to dive headfirst into casual investing with Robinhood and didn’t know where to start. I messed around with some stocks related to marijuana and the medical industry and ended up losing a fair bit of money.
It didn’t work out because I didn’t know what I was doing and I didn’t do enough research into what I was investing in.
Moving forwards, I started doing more research on a few different industries and had a hard time deciding what I wanted to put my money towards. I read a bunch of stuff online about investment strategies, diversification, options, and all types of other boring mumbo-jumbo.
But, even after a lot of research, I didn’t really know what I should do. I was overwhelmed by all of the information online and had a fear of investing in the wrong companies. I felt uninterested in learning more about this stuff and it was a bit confusing with all of the contradicting opinions and predictions I found on the internet.
So, I decided to start small and invest into an industry that I am very familiar with: the gaming industry.
I quickly noticed that it was paying off and that I should invest more.
And turns out, it was definitely worth it.
Before we go any further, I just want to say that I am by no means an expert. Hell, I am barely a novice. But, I want to share what I think and the reasoning behind why I decided to continue investing into gaming stocks as a college student without a ton of disposable income.
However, if you are interested in investing casually like I am, check out Robinhood. It is very easy to use and if you sign up with my link you and I both can earn a free stock.
A HUGE & Explosive Industry
The gaming industry is something that has been (and is going to continue) growing at an unprecedented rate. According to Newzoo, it is estimated that the global gaming market will generate nearly $160 billion in revenue in 2020 and will continue to grow to over $200 billion by 2023.
As you can see, it is a giant and very profitable industry. But its important to look at it on an ever larger scale.
Large corporations like Amazon are investing heavily into creating their own game development studios, Facebook is pushing their video-game livestreaming platform, and PC sales are at an all-time high. On top of this, as more countries like China begin to increase the size of their middle class, there are going to be tons of new people with money and a need for entertainment. With COVID running rampant around the globe, what better way to get entertainment than to spend your time playing video games?
That’s exactly why I have invested into companies within this industry.
Gaming Stocks I Have Invested In
It is important to realize that there are a few different sub-sectors of the gaming industry that could see large amounts of growth in the near future. There is video game hardware (such as new consoles or products), video games themselves, and things that could play a crucial part in the gaming experience (like AI).
I have been investing in the first two, so here are some of the stocks that I have purchased and my reasoning behind why I am doing it.
Take Two Interactive
Take-Two Interactive (TTWO) is the first stock that I put a decent amount of money into. They are the publisher for industry leading game franchises like Grand Theft Auto, NBA 2K, Borderlands, & Sid Meier’s Civilization.
Pretty much all of their releases are ginormous hits and Grand Theft Auto 5 alone brought in over $6 billion in revenue since its release. Their titles get more and more ambitious with every release and with the upcoming PlayStation 5 and Xbox whatever-its-called, there are going to be some huge video game releases around the corner.
In fact, since I first invested in Late 2019, I have had a 40% return on my initial investment.
TTWO is a super promising option and it could potentially be a good buy. But, always be sure to read up on the company and don’t take my word for it. I don’t want to be held accountable for your investment decisions.
Sony (SNE) has been a huge player in the gaming market from the start. They have revolutionized the industry with consoles like the Playstation 2 and they continue to innovate today with all of their new products. They are also heavily involved with different aspects of the technology industry with things like cameras, TVs, and various other electronics making up large portions of their revenue. But, their largest moneymaker is their gaming and network services sector (A.K.A PlayStation).
The PlayStation 4 sold over 110,000,000 units and Sony’s game sales are at a record high. Plus, the PlayStation 5 is going to be coming out towards the end of 2020 so it definitely looks like a promising option.
Sony is a more recent purchase of mine but I have invested fairly heavily (compared to some of my other companies on this list) and I have already made a 12% return on my initial investment. I expect this number to be much higher when the next generation of consoles release at the end of the year.
Once again, if you are interested in investing in Sony or any of these other stocks, sign up for Robinhood using my link here for a free stock. Oh, and don’t forget to do your research.
I really don’t think that Nintendo needs an introduction. It is a brand so iconic that your parents have been calling every game console ever made by its name. They are the masterminds behind the NES, Mario, Super Smash Bros, the Wii, the Nintendo Switch, and much more.
I’m not gonna spend too much time on this one but my investment has paid off and according to many forecasts online, it is going to get even better. I have already made an astonishing 30% return on my initial investment and am expecting much larger numbers in the future.
There are some other stocks I have been buying and/or following in the video game industry, such as Activision-Blizzard (ATVI) and Electronic Arts (EA), so I would definitely recommend reading into those as well. Plus, I have been looking at stocks related to the “other” gaming industry: casinos and online gambling. Both of these industries are somewhat similar and I understand the gist of each of them, so I figure I will give the latter one a shot as well.
Let me know if you are interested in hearing about my experience with the casino and online gambling industry and don’t forget to sign up for Robinhood using my link.