3 Funds Riding on Video Games and Streaming Services
Zacks Investment Research | Apr 23, 2020 01:26AM ET
The universe of indoor gaming, e-sports and streaming shows has attracted significant attention owing to the segment’s ability to offer an impressive mode of entertainment. In fact, this world of indoor entertainment has garnered more limelight in the last few months because of the deadly coronavirus pandemic that has confined millions to their homes around the world.
In addition, several technology giants have now come up with free gaming options and new applications to benefit from this rise in demand for indoor entertainment. Mutual fund investors could thus take a look at this particular segment from an investment perspective.
Video Games and Streaming Giants Come to Rescue
When the lockdown was first put in place, homebound Americans paid attention to hoarding food and essential products. But as days went by, they turned their attention to entertainment options such as video games, e-sports and video streaming. In fact, sales of video games in the United States increased in March to hit a 12-year high.
Speaking of video streaming, service providers such as Netflix and Amazon Prime witnessed a sharp surge in the number of subscribers amid the lockdown. Netflix added 15.77 million new subscribers around the world in first-quarter 2020, up 22.8% from first-quarter 2019 as a result of the social distancing and stay-at-home measures. Earlier this month, Disney also announced that its streaming service, Disney Plus, had already hit 50 million subscribers since its launch in November 2019.
Coming to the space of video games and e-sports, Alphabet’s YouTube, Microsoft’s Mixer and Amazon’s Twitch have garnered attention apart from gaming giants such as Electronic Arts Inc. (NASDAQ:EA), Take-Two (NASDAQ:TTWO) Interactive Software, Inc. and Tencent Holdings Limited etc. Amazon Prime’s Twitch Prime is also offering numerous free games and in-game content to its video players. These features are available for games such as Destiny 2, Apex Legends, and Rainbow Six Siege.
In addition, earlier this month, Google made its game-streaming service Stadia Zacks Investment Research
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