It is the best stock of video games

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

This prompts investors to eye video game stocks like Activision Blizzard Inc. (NASDAQ: ATVI) and Electronic Arts Inc. (NASDAQ: EA) to take advantage of this growing trend.

As millions of Americans were locked away due to the coronavirus, people turned to gambling to pass the time. Esports leagues developed and only grew as live sports were delayed or canceled. And just in time, a new wave of consoles hit retail store shelves.

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

New developments such as 5G and virtual reality will allow game designers to push the boundaries and design games that attract even more players to the industry. Fortunes will be made by those who invest in industry leaders and innovators today and cling to the wildly profitable race ahead.

Activision Blizzard and Electronic Arts are currently the two largest pure-play video game companies in the United States, and investors are right to target these companies. They are basically pickaxe and shovel games for the whole industry. Both have massive success catalogs and are constantly working to develop new ones.

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

But an action stands out as the best in-game action to own …

Why Activision Blizzard’s stock is ahead of EA’s stock

Electronic Arts offers some of the biggest games in the industry. It has games with large audiences like Battlefield, FIFA Soccer, Madden NFL Football, and Apex Legends. These games are must-haves with new versions being released regularly – at least once a year in the case of sports games.

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

Apex Legends also has over 100 million, of which 12 million are active every week.

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Madden NFL game has over 10 million regular users.

In 2022, Electronic Arts is launching its new golf game which will be the only game that allows players to play the Masters Tournament, PGA Championship, US Open Championship and The Open Championship, the four main championships on the PGA Tour.

It also expects to release the latest version of the Battlefield franchise, a fighting fighting game known for its online multiplayer contests.

It also owns the Star Wars franchise now and will release the latest game, titled Star Wars Battlefront, later this year.

In total, the company has nearly $ 40 billion in revenue and is expected to increase profits 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. He also owns King Gaming, the developer of the highly profitable Candy Crush mobile game series.

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 over 5 million monthly users and is one of the highest grossing video games of all time.

The Call of Duty and Overwatch-focused esports leagues continued to perform well.

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

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

Activision Blizzard achieved nearly $ 80 billion in revenue in the past year. The growth is not over and analysts expect the company to grow profits by more than 15% per year over the next five years.

Technically, the two actions are roughly the same. The recent round of profit taking has pushed both stocks below their 50-day moving average, and they are getting closer to significant support for the 200-day moving average.

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

If all things were equal and we had to pick only one, it would be Electronic Arts, the smallest company with the highest expected revenue growth. If that was your choice, it would be difficult to criticize your decision.

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

When a director who has a proven track record as an investor and business owner buys the stock, we need to give that company the edge.

Activision Blizzard action is our choice if you can only pick one.

Three actions even better than ATVI

Chief Investment Strategist Shah Gilani just held his first whirlwind stock selection event – browse more than 50 stocks to tell you if they are stocks to buy or stocks to sell.

Dozens are too expensive and overrated – you should give them up as soon as possible.

But Shah says THESE three actions are “screaming buys”.

All three are trading at a discount… they’re companies most people haven’t even heard of… and they have huge tailwinds ready to send their stock prices into the stratosphere.

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