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Two Top Gaming Stocks to Watch

By Jose Najarro - Updated Mar 12, 2021 at 6:53PM

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These gaming stocks just reported earnings. Here's why they should be on your watchlist.

Today we take a look at two gaming giants: Activision Blizzard (ATVI -0.39%) and Electronic Arts (EA 2.07%). Both companies recently released their earnings and are still showing strength in the gaming market.

Activision Blizzard investors have reaped the gaming market's rewards, as the stock was up some 10% after reporting earnings. Activision's Call of Duty franchise now makes roughly 60% of total net booking for the quarter, with its mixture of premium game sales, mobile platform, and free-to-play business model. If Activision can copy this business to its other franchises, like World of Warcraft, Overwatch, and Diablo, it may lead to even more substantial investment returns.

EA investors were not as lucky, as the stock dropped slightly after the company's earnings report. EA executives are focused more on sports gaming, as they see more robust growth in this area than the overall gaming market. Lucky for EA, it has strong IP in this market already, and is looking to increase its exposure with the proposed acquisition of Codemasters. Codemasters owns multiple racing game titles, which EA believes will be a great addition to its sports segment.

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Stocks Mentioned

Electronic Arts Inc. Stock Quote
Electronic Arts Inc.
$131.64 (2.07%) $2.67
Activision Blizzard, Inc. Stock Quote
Activision Blizzard, Inc.
$77.62 (-0.39%) $0.30

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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