While the tech industry in general is continuing to experience volatility, there could still be many opportunities for investors over the long term. In this Motley Fool Live segment from "Ask Us Anything," recorded on April 11, Fool.com contributor Jamie Louko takes a closer look at the future of the gaming industry in particular, and what potential investors need to consider.
Jamie Louko: But really, for any company, if you're looking to dollar-cost averaging if a stock has sunk in price, really the question you want to ask yourself is, is the thesis intact? Is the industry continuing to grow or are the competitive advantages for your specific company still in place to the point where it can gain market share? Really, for a lot of tech companies, the answer is still yes. I'm going to pull Unity Software out specifically just because it's been top of mind recently. Last month, a Unity Gaming Report of 2022, where they noted that the gaming industry is on track to reach $300 billion by 2027. That is a massive, massive market in the gaming industry.
Gaming is one of the fastest social media businesses to be growing right now into the future. The industry is growing so fast yet still Unity is falling despite being one of the leaders in software that develops video games. With this massive industry, it's been making plenty of acquisitions to make its product stand out to the competition. It's gaining leadership, its revenue is strong. In a case like that specifically, I do think you should be taking advantage of these short-term things. The difference between investing dollar-cost averaging down in tech right now and investing in consumer goods, that's not a yes or no, that's not a black and white answer. It's really up to your preference. Consumer goods or retail would probably be less volatile over the next 10 years than something like tech would. So if you want less volatility, then you might want to invest in that, but that's more of a personal choice.
In tech and in SaaS; in software as a service, so many of the industries at large are continuing to grow. The businesses within those industries are continuing to see really strong growth, in most cases improving profitability and free cash flow as well. Not to speak for all tech businesses, but a lot of businesses are still on track, and if you have those high-quality companies that are still growing in massive industries in your portfolio and they're down, you might want to consider looking at them to dollar-cost averaging because, for the most part, a lot of companies, their thesis aren't broken just yet.
