The pandemic has boosted this industry…
The gaming industry is posting record-breaking numbers.
A few months ago, around the world, people shut their doors and settled in for what became a multi-month lockdown. And many found new ways to spend their time. Some caught up on their favorite TV shows, others discovered a new hobby, and others picked up their gaming controllers and began playing video games.
And this shift has brought record-breaking sales into the video gaming industry.
Gaming giants ranging from Microsoft (MSFT) and Nintendo (NTDOY) to Activision Blizzard (ATVI) and Take-Two Interactive (TTWO) have continued to see boosted numbers thanks to the pandemic. And these big numbers have the future predictions looking bright- it’s been predicted that industry revenue will grow 9.3% in 2020 to $159.3 billion.
Where’s the money?
On March 13, the CDC put the coronavirus prevention plan into action. And in turn, gaming companies saw an explosion in activity. Valve Corporation saw a record 20 million players on its Steam game platform. Microsoft’s head of Xbox, Phil Spencer, noted that the service was seeing increases in users across the board.
And this uptick also reflected in sales – bringing cold hard cash into the industry. Nintendo reported that its Q1 2020 profit grew an incredible 428%, with sales of the company’s newest release, “Animal Crossing: New Horizons” sold 10.63 million units. Since the game’s launch in March, Nintendo has sold an unheard-of 22.4 million copies. On top of this, sales of Nintendo’s consoles hit all-time highs, up 166% in the quarter, with the company selling 5.68 million units.
Activision Blizzard saw an uptick in attention as well. The company reported its Q2 earnings on August 4 – and revealed that it saw revenue increase by a record 270% year-over-year thanks to the recent release of “Call of Duty: Warzone.” And both Microsoft and Sony reported double-digit growth in their gaming businesses.
So, I think it goes without saying – there’s a profit opportunity here.
Here’s what we’re seeing…
How can I get some?
It makes sense that the gaming industry has seen such an uptick in popularity – and I think this popularity is here to stay as the lockdown continues. And while the lockdown continues, I believe that there’s a prime time profit opportunity in front of us.
Here’s the thing though, there are many different companies involved in the gaming industry. So, the hard part is knowing where to put your money.
But I have an industry favorite, and it’s delivered for me in big ways.
I’m talking about Activision Blizzard (ATVI) – the creator of the infamous “Call of Duty” that many continue to play to this day. This stock has performed well over the pandemic – but with talks of a vaccine, many wonder how ATVI will fare. So, we see a slight pullback in this stock.
And that’s why I believe it’s a buy right now – or on any pullback that we see in the future. Because this stock performed even before the virus hit, and in my opinion, it’s one you want in your portfolio.
In the spotlight: The airline industry
The struggles of the airline industry have been center stage since the beginning of the pandemic.
And from low sales to declining production numbers – this is one industry that has felt the brunt end of what COVID-19 has caused. And the trend continues…
Boeing customers canceled plans to buy 43 of the manufacturer’s 737 Max planes in July as canceled orders outpaced sales for the sixth month. Through July, Boeing has net negative orders of 836 planes, including aircraft the company took out of its backlog of orders awaiting fulfillment.
To put this in perspective, last month delivered four planes. No, that’s not a typo – one of the world’s leading airline companies only delivered four planes.
But those working in the industry haven’t lost hope. Boeing’s CEO, Dave Calhoun, is “hopeful” that aircraft demand will recover in early 2021. And that’s why I’ll be keeping a close eye on this industry, and I’ll be sure to keep you updated.
Are You Noticing a Theme Yet?
My past several recommendations have been directly related to companies that are either working to adapt to – or becoming beneficiaries of trends and policies in – our Covid-19-influenced markets.
From the resort and entertainment company that handed us 100% gains to the fertilizer manufacturer that just let us close out a 50% win, there are still plenty of profits to be made, even though the markets have been on a roller-coaster ride this year.
Regardless of what 2020 continues to throw at us, I plan on sticking with the recommendations of my S.C.A.N. trading system… the same one that picked out the two winners above, among many others.
I want you to be on board before it pinpoints the next profit opportunity.
Click here now for more details.