Should you stuff your stocking with video game stocks?

The gaming industry is healthier than ever--and growth is expected to continue.

Bryan Borzykowski 28 November, 2017 | 6:00PM

Over the next few weeks, we'll be buying gifts for friends and family. And while our shopping lists differ, they likely have one thing in common: video games.

The holiday season is one of the busiest times of the year for game lovers, and this year will be no different. According to NPD Group, a market research firm, gaming-related sales will increase by double digits this holiday season over the year prior. In September, game sales rose by 39% year over year, reaching $1.2 billion during the month.

While plenty of us will be buying games for the kids in our lives--and likely for a few adults--some may be thinking about purchasing a few gaming-related stocks for their own portfolios. After all, since January several video game companies, such as Nintendo (NTDOY),  Activision Blizzard (ATVI) and China's  Tencent (TCEHY), have seen their stock prices soar. Those stocks are all up more than 80% year to date as of this writing, vastly exceeding the S&P 500's 17% return. Although the video game industry has exploded over the past few years, it's still expected to grow at a healthy clip going forward. PwC estimates that global industry revenues will surpass $120 billion by 2021, up from $60 billion in 2013.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Activision Blizzard Inc71.98 USD2.51
Electronic Arts Inc122.88 USD1.26
Microsoft Corp183.25 USD1.02
Nintendo Co Ltd ADR50.84 USD-0.70
Sony Corp ADR64.76 USD0.28
Take-Two Interactive Software Inc136.17 USD1.57
Tencent Holdings Ltd ADR54.32 USD3.96

About Author

Bryan Borzykowski

Bryan Borzykowski  Bryan Borzykowski is a Toronto-based business and investments writer. He’s contributed to the New York Times, CNBC, BBC Capital, CNNMoney and several other publications. Bryan’s also written three personal finance books and appears regularly on CTV News.

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