The mobile phone changed from a device you talked into vs one where you look at the screen, creating a generation of kids who rarely look up from their cell phone screen. This bowed neck biopic based on whatever game de jour has created a zombie group of kids crossing traffic oblivious to everything around them. This entertainment shift has created a stronger share price in this stock specific sector where recently revenue in gaming surpassed movie theater revenue – and this trend is likely to widen as more entertainment goes directly to the handset.
Companies like Nintendo (OTCMKTS:NTDOY) have come to the table with game changers like PokeMon Go which helped rally the share price by 100%, so when a game hits, it hits big and becomes a cultural phenomena where crowds gather in odd places like churches or hospitals. It is a flash mob mentality which effects the company valuation in a similar way as shares in the entire sector are buoyed by these wandering lost souls gamers and is embedded in the stock price like a secret token.
Other players in the industry do different things, but this “gaming snowball effect” keep s a fat multiple attached to the sector that keeps the water level high and lifts all of these gaming stock vessels. It is a flight to quality in gaming related shares as PokeMon Go alone is driving companies like Nvidia (NASDAQ:NVDA) whose products are used in gaming, professional visualization, datacenter, and automotive markets. It sells its products primarily to original equipment manufacturers, original design manufacturers, system builders, and motherboard manufacturers.
You have some other interesting players in the space, like SPYR Inc (OTCMKTS:SPYR) who understand the trend is swinging heavily in favor of smart phones and tablets as the go-to devices that gamers are choosing, and SPYR also realizes that hardcore PC and console gamers aren’t ready to give up their choice for gaming either. The company’s answer is Pocket Starships (currently published by SPYR’s wholly owned subsidiary SPYR APPS, LLC) and its real-time, cross-platform design. Pocket Starships’ free-to-play Massively Multiplayer Online (MMO) game is bringing together all gamers on all devices — all at the same time.
Another solid company is Glu Mobile Inc (NASDAQ:GLUU) who offers free-to-play action, celebrity, sports, and simulation genre mobile games, many of these you have seen cross your screen with brands like Contract Killer, Cooking Dash, Deer Hunter, Diner Dash, Eternity Warriors, Frontline Commando, Gun Bros, Heroes of Destiny, Racing Rivals, Tap Sports Baseball, and Tap Sports Football. The company also creates games based on third-party licensed brands, such as Kim Kardashian: Hollywood, Kendall and Kylie, Katy Perry Pop, James Bond: World of Espionage, Mission Impossible: Rogue Nation, and Sniper X With Jason Statham. Glu Mobile markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide.
So lift your head up and take a look at some Gaming Sector stocks that are affected by this growing entertainment market driven by our zombie youth – just try not to hit them with your car.