A Safer Way to Play Mobile Gaming Stocks

In today's video, Tamara looks at the fast-growing mobile gaming industry. With the global gaming market on track to reach $17 billion in sales by 2015, there are massive opportunities for investors. However, not everyone can stomach the risks inherent in speculative names such as Zynga (Nasdaq: ZNGA  ) . A safer way to play in this space is by investing in the platform providers.

Companies such as Apple (Nasdaq: AAPL  ) , Facebook (Nasdaq: FB  ) , and Google (Nasdaq: GOOG  ) take up to 30% of the app sales as well as in-game purchases processed by Zynga and others in the space. Apple's a big winner here, with more than 30 billion application downloads and upwards of $5 billion in payments to developers. This revenue share has been a significant source of income for Facebook as well, with Zynga accounting for 12% of the social network's total revenue.

It isn't always easy to know which stocks will outperform and which will fizzle. Luckily, some of The Motley Fool's brightest analysts have done the hard work for you. Get instant access to our free report titled "Forget Facebook -- Here's the Tech IPO You Should Be Buying."

Fool contributor Tamara Rutter owns shares of Apple. Follow her on Twitter using the handle @TamaraRutter for weekly stock picks and other Foolish insights. The Motley Fool owns shares of Facebook, Google, and Apple. Motley Fool newsletter services have recommended buying shares of Apple and Google, as well as creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1914655, ~/Articles/ArticleHandler.aspx, 4/23/2014 9:10:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement