Video gaming stocks are riding along the positive momentum created by the bullish U.S. stock indices over the past five days. Major players in the industry witnessed significant gains over the same time frame even in the absence of any major event.
However, Lindsay Lohan's new mobile game release and King Digital Entertainment plc's (KING) Candy Crush Saga's debut on Windows Phone made headlines. Further, Penn National Gaming (PENN) completed the $36 million site excavation phase for a Hollywood casino.
Top Stories Over the Last Week
1. Perfect World Co., Ltd. (PWRD), in collaboration with China Education International Exchange Association (CEAIE), Thurgood Marshall College Fund (TMCF) and the Humpty Dumpty Institute (HDI), launched the “Access China” project. The project aims at inter-cultural and educational development while improving Sino-U.S. ties. Over the long run, we believe such projects would facilitate overseas market expansion for Perfect World.
2. Activision Blizzard, Inc. (ATVI) recently announced two new elements in its popular Skylanders videogame franchise. These elements — Light and Dark — will showcase two new Trap Masters — Knight Mare and Knight Light. The new element expansion pack is priced at $29.99 and aims to capitalize on the holiday season sale.
3. Following Kim Kardashian's fleeting fame in the gaming world, Hollywood actress Lindsay Lohan is set to make her debut. Reportedly, the celebrity came up with her own mobile game app — The Price of Fame — currently available on both Android and iOS devices. The new game works on similar premises as Kim Kardashian: Hollywood allowing players to become celebrities and gather fans. As the game is a new launch, no major reviewers have rated it yet. However, initial responses of players seem to be lackluster, indicating that The Price of Fame might not end up being as successful a story as Kim Kardashian: Hollywood.
4. King Digital Entertainment recently launched its flagship game Candy Crush Soda Saga on Windows phones. The game offers 690 levels to around 8.1 million Windows customers worldwide. We believe the latest expansion of King Digital into the Windows phone market will further boost the popularity of the latest version of Candy Crush and boost revenues.
5. On Dec 17, Penn National Gaming completed the $36 million site excavation phase for building the $360 million Hollywood Casino Jamul-San Diego in Jamul, CA, expected to become operational in 2016. Boasting state-of-the-art infrastructure, the casino will include a three-story gaming and entertainment facility spanning approximately 200,000 square feet and have over 1,700 slot machines, 50 live table games, multiple restaurants, bars and lounges. While the upcoming casino will help the local community by creating 2,500 construction and permanent jobs, it also paves the way for Penn National's success in the casino business.
Performance
The following table shows the price movements of the major video gaming players over both the past five trading days as well as the last six months:
|
Company |
Last 5 Days |
Last 6 Months |
|
ATVI |
5.42% |
-12.88% |
|
EA |
5.21% |
20.86% |
|
GLUU |
6.19% |
-1.27% |
|
MSFT |
1.21% |
14.15% |
|
NTES |
2.89% |
31.37% |
|
TTWO |
1.00% |
32.61% |
|
ZNGA |
-2.40% |
2.46% |
Over the last 5 days, Glu Mobile, Inc. (GLUU) remained the top gainer with 6.2% rise in stock prices. The stock remains buoyant because of the news of insider buys. Reportedly, earlier this month, the company's directors Lorne Abony and Eric Ball purchased 50,000 and 5,000 shares, respectively.
Interestingly, Glu Mobile has been hovering around the 52-week low level but is currently showing an uptick. If the market remains positive, the stock is likely to gain strength in the coming days.
On the flip side, Zynga, Inc. (ZNGA) was the only major stock to have witnessed a dip this week. The company dropped 2.4% over the past five trading sessions. Notably, the stock has lost nearly 50% of its market value year-to-date, due to growing investor concerns over its business model and future prospects.
In the last 6 months, Take-Two Interactive Software Inc. (TTWO) gained the maximum — nearly 32.6% — while Activision Blizzard lost the most, registering a decline of 12.9%.
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ACTIVISION BLZD (ATVI): Free Stock Analysis Report
TAKE-TWO INTER (TTWO): Free Stock Analysis Report
ZYNGA INC (ZNGA): Free Stock Analysis Report
PENN NATL GAMNG (PENN): Free Stock Analysis Report
GLU MOBILE INC (GLUU): Free Stock Analysis Report
PERFECT WORLD (PWRD): Free Stock Analysis Report
KING DIGITL ENT (KING): Free Stock Analysis Report
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