Despite Zynga's (NASDAQ:ZNGA) post-IPO performance, not all gaming companies are terrible investments. Chances are, last time you invested in a gaming company, you lost out big. Zynga is down more than 60% since its IPO. So, why should you be interested in the latest and greatest casual gaming company, Supercell?
Sure, the company rakes in more than $2.5 million a day. Additionally, it sports a 58% operating margin -- an enviable number that Electronic Arts would love to reach. But, don't forget the history of Zynga and what it says about the industry.
In the video below, Motley Fool contributor Kevin Chen reminds you why long-term investors should steer away from casual gaming companies. Luckily, if you are interested in profiting from the broader gaming industry, Kevin offers two picks for your portfolio: Giant Interactive (NYSE:GA) and Activision Blizzard (NASDAQ: ATVI).
To learn more on how Giant Interactive and Activision Blizzard differ from other gaming companies, watch on the video below.
Fool contributor Kevin Chen has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard and Giant Interactive Group. The Motley Fool owns shares of Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.