Profit Pregame

The One Stock You Need to Score Big on America’s “Video Game Frenzy”

The real winner of the pandemic…

The video game industry is thriving.

What’s happening?

When the pandemic began, it seems like everyone was looking for a new hobby to curb boredom caused by the pandemic. From learning how to skateboard to reading a book a week – Americans continued to explore activities they had never had time for. And one of the largest growing hobbies we saw was the world of video games.

In 2020, it was recorded that 244 million Americans, roughly ¾ of the population, play video games. This figure is a 32 million jump from 2018 numbers. On top of this, usage on more than one device by games has increased to 65% – up from 59% in 2018. And the impressive growth isn’t only in players but also in sales in the industry.

Here’s what we’re seeing…

Where’s the money?

Electronic Arts also blew away analyst estimates for earnings, with earnings per share some 66% higher than Wall Street anticipated. Epic Games, the maker of the hit game Fortnite, said Thursday it raised $1.78 billion at a post-money valuation of $17.3 billion. Nintendo also reported a knock out earnings season. And it’s leading product will fit right in the palm of your hand.

They call it the “Switch fever,” – and it’s not going away anytime soon. Last quarter, Nintendo reported a 428% increase in profits. And now, in their newest earnings report, it looks like they’ve done it again. Nintendo reported another 209% jump in profits, with sales climbing 73%.

This increase in gaming is no surprise, though. And I believe we’ll continue to see a strong wave of consumers in this sector as long as the pandemic is around. And here’s how you can cash in on this gaming craze…

How do I get some?

With video game companies posting impressive numbers as I listed above, it’s no wonder that many investors are wondering how they can get their piece of the action. And for me, I’ve got my eyes on Sony. With the holiday season approaching and releasing their new Playstation console coming up – I think Sony is about to see a massive uptick in its business and stock.

According to insiders, Sony’s new PlayStation will be superior to all consoles on the market – including Nintendo and Microsoft. And with the limited stock at launch, I believe they will see a frenzy of consumers trying to get their hands on one. And the best news is, video games are just one side of Sony’s business. Sony also is a significant player in the music business – bringing in even more profits across the board.

This outlook is precisely why I am looking to add Sony to my portfolio on any pullback. I believe by waiting for a pullback; you’ll set yourself up with a perfectly priced stock that will allow you to take the biggest profits you can.

Another Pandemic Success Story

Sometimes, life just isn’t fair…

Forced closings and lockdowns during the Covid-19 pandemic decimated many businesses, while others – by virtue of their products or business model – thrived.

Electronic Arts is one of the lucky ones, and their amazing earnings report tells that story.

A look into the company itself might not have revealed such a positive outlook, but adding up all of the factors surrounding it indicate just that.

I kept that firmly in mind when I created my S.C.A.N. trading algorithm…

And ever since, I’ve been using it to cross-reference millions of data points to provide my Project 303 readers with the best trading recommendations out there.

Just yesterday, we had the chance to take a 100% profit – click here now to see what else S.C.A.N. has in store.

In the spotlight: America’s Massive Unemployment Fiasco

An additional 751,000 Americans claimed first-time unemployment benefits last week. That’s down slightly from the prior week. It was somewhat lower than economist has expected, though – leading to confidence faltering across the country. On top of that number, 362,883 workers had claimed aid under the Pandemic Unemployment Assistance program – a program made for though not eligible for traditional benefits.

Added up, first-time claims stood at 1.1 million last week without seasonal adjustments – mostly unchanged from the level of the past few weeks.

Meanwhile, continued jobless claims, which count workers who have applied for benefits for at least two weeks in a row, stood at 7.3 million, down by about half a million from the prior week.

And while that move lower might seem promising, the speed of the recovery has many economists worried. Because while we see a recovery, it’s going to be a slow one, which could leave a lasting impact on the economy.

With that said, even with the current environment – we’re seeing a market continuing to run up into the green. And that’s telling me one thing – this is a market you have to trade carefully. So, my biggest piece of advice would be to plan your trade and trade your plan. As long as you stick to your trading criteria and risk tolerance, you can make a fast profit and protect your bottom dollar while you’re at it.

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