In today's video I look at fundamentals, valuation metrics, and recent news for Activision (ATVI), Tencent (TCEHY -1.59%), Magnite (MGNI 3.42%), and Digital Turbine (APPS 6.02%). All four companies are in markets with growth potential and could perform well as long-term investments. Below I share a few highlights from the video.
- A report by App Annie has stated that consumer spending on apps is breaking revenue records in Q2 2021. The four companies in today's video are either in the gaming or the advertising technology industry, both of which could fundamentally benefit from the increase in revenue.
- All four companies have strong financial data for the trailing 12 months. Activision, Tencent, and Digital Turbine all have positive cash flow from operations and positive earnings. Magnite is expected to reach those financial goals within the upcoming 12 months.
- Activision could be giving investors a buying opportunity, as its forward-price-to-sales ratio of 7.4 is currently at levels seen in the summer of 2020.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closed prices of July 2, 2021. The video was published on July 3, 2021.