The lockdowns in response to the COVID-19 outbreak have impacted citizens all over the world. It is changing the fabric of our day-to-day life, and this means it is worth evaluating how our habits will change as well. With so many citizens staying indoors, could gaming stocks see a boost due to increased usage?
Take-Two Interactive (NASDAQ:TTWO) is a video game holding company that owns two major publishing labels; Rockstar Games and 2K. Its shares have climbed 3.5% month-over-month as of close on March 27. This is in stark contrast to the bloodbath that has hit much of the broader market. Take-Two enters the month of April with an immaculate balance sheet and a promising new deal.
The 2K brand honed its reputation for producing sports sims in the previous decade. This month, the publisher won a multiyear agreement with the National Football League (NFL) to make a series of “non-simulation” game experiences. This would mark the first NFL-licensed 2K game since NFL 2k5 over 15 years ago. However, this next company has maintained its hold on NFL simulation games with its Madden franchise.
Electronic Arts (NASDAQ:EA) is the second-largest gaming company in the world. Its stock has dropped 7% month over month. EA also possesses a flawless balance sheet. Both companies have an impressive foothold in sports-centric gaming. With most leagues now on hiatus, gamers will likely turn to the virtual world to satisfy their cravings. These are some of the few entertainment stocks to trust right now.
