During the stay-at-home environment, young people everywhere are engaged in mobile games. Mobile games already account for most of the global video game industry, asserts Mark Skousen, industry leading growth stock expert and editor of Forecasts & Strategies.
The mobile game segment accounted for 60% of revenues in the global video game market in 2019. Revenues totaled $49 billion and profit came in at $16.9 billion, per a report by Golden Casino News.
The global mobile games market is expected to reach a valuation of $56.6 billion by 2024, expanding at a compound annual growth rate of 2.9%. Talk about a growth industry!
One of my favorite gaming stocks in this area is Zynga Inc. (ZNGA). Based in San Francisco, Zynga has developed electronic games for Apple iOS and Google’s Android operating systems, as well social networking sites such as Facebook and Snapchat.
The game maker has a long list of well-known games such as FarmVille 2: Country Escape, FarmVille 3: Animals, Zynga Poker, Dawn of Titans, Words with Friends and others. Zynga saw revenues jump 52% to $1.5 billion in the past year. It has gradually become profitable since 2016.
Zynga’s expected earnings growth rate for the current year is more than 100%, and earnings estimates have been rising recently. The stock sells for less than $10 a share. And in the past couple of weeks, six insiders have bought substantial shares. Let’s add Zynga to our recommended portfolio.
