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Best Video Game Stocks List to Buy for Growth in 2022

To grab your share of the future of entertainment and gaming, check out the top video game stocks list available.
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After surging during the pandemic, video game stocks look to be setting up for another run. Demand for entertainment continues growing. And video games are leading the way. The top video game stocks list continues expanding as companies look to grab a piece of the future of entertainment.

Video games became the go-to option with half of humanity locked down during Covid. And not just for kids. Adults too. Companies are drawing interest as new tech makes gaming more immersive.

Moreover, the headwinds propelled video game sales to a record $56.9B in 2020, showing 27% growth YOY. But demand continues creeping up. As gaming communities grow in popularity, the industry is seeing higher engagement.

In fact, gaming is now the most popular home entertainment choice. The pandemic helped the video game industry surpass movies and North American sports together.

Video game revenue grew another 1.4% in 2021, showing strong momentum. Don’t expect the trend to change anytime soon either. To grab your share of the future of entertainment, check out the top video game stocks list below.

Top Video Game Stocks List

As video games continue growing in popularity, companies are noticing. The rise in demand over the past few years leaves video game makers with strong cash positions. As a result, the funds can help fuel future growth.

The top video games stocks list includes companies in all aspects of the industry. Both hardware devices and gaming are expanding.

Although supply chain issues are limiting companies’ ability to ramp sales, demand is strong. In fact, some will argue the pandemic permanently boosted the industry.

With this in mind, here is the best video game stocks list to buy for growth this year.

No. 5 Nintendo (OTCMKTS: NTDOY)

  • EPS Growth (YOY): -10%
  • Revenue Growth (YOY): -3%

Although Nintendo saw game sales decline slightly compared to last quarter, device sales remain strong. That said, Animal Crossing: New Horizon saw sales peak last year.

Meanwhile, Nintendo Switch sales reached over 100M units. As a result, total net sales reached their third-highest level ever.

At the same time, rising material costs are cutting into margins. The operating profit margin slipped 1.4% due to lower profits and higher marketing expenses. With this in mind, Nintendo expects shortages and rising costs to continue this year.

Nintendo is still in a strong position with some of the most popular franchises. Mario Cart, Animal Crossing, Super Smash Bros, and Pokémon, to name a few.

The company is in a position to take advantage of the growing market between video games and Nintendo devices.

No. 4 Take-Two (NASDAQ: TTWO)

  • EPS Growth (YOY): -22%
  • Revenue Growth (YOY): 3%

Take-Two is the mastermind behind hit franchises like Grand Theft Auto (GTA) and NBA2K. The company is aggressively targeting the mobile market.

For example, Take-Two now has four of the top 200 mobile games. Moreover, the company buying Zynga should help accelerate the transition. The move allows TTWO to take a bigger step into mobile gaming with hit titles like Farmville and Words With Friends.

Furthermore, TTWO is moving to stabilize revenue. Rather than having hit game releases drive revenue, the company has a different approach. Instead, Take-Two looks to boost subscription revenue.

By offering subscriptions through Xbox, PlayStation, and Apple Arcade, TTWO has more reliable income. As a result, it can plan to invest back in the business, stimulating long-term growth.

No. 3 Electronic Arts (NASDAQ: EA)

  • EPS Growth (YOY): 8%
  • Revenue Growth (YOY): 24%

EA is another top video game stock to own, with many popular titles such as Madden and FIFA. But EA has an advantage.

For one thing, the company has a more reliable income stream with hit titles coming out every year. Games like Madden and FIFA get an annual refresh with new teams and graphics.

Furthermore, the company is successfully transitioning to mobile. FIFA Mobile is a big hit, with new players soaring 80% in the fourth quarter. Not only that, but APEX Legends is also one of the most popular online games.

Multi-player games online like FIFA and APEX are driving massive user growth. Users are recruiting friends and family to boost their teams. As a result, EA is achieving record player growth, engagement, and bookings.

Keep reading and discover the two companies leading the best video games stocks list to buy this year.

No. 2 Nvidia (NASDAQ: NVDA)

  • EPS Growth (YOY): 49%
  • Revenue Growth (YOY): 53%

Nvidia is a pioneer in graphics cards and GPUs. The company continues dominating the industry with next-gen abilities. With this in mind, Nvidia’s cards power the top gaming devices.

In fact, Nvidia’s gaming business is reaching records, with revenue surging 31% YOY. Nvidia’s gaming business alone is worth over $3.6B, up 118% since Q2 2021.

Despite lockdowns in China, Nvidia’s newest graphics cards are driving significant demand. The hardware is the fastest consumer GPU ever.

Furthermore, Nvidia RTX, the company’s gaming platform, continues to grow. In Q4, the company announced 15 new titles, bringing the total to over 250. Yet Nvidia is much more than gaming.

Nvidia also makes devices for data storage, business intelligence, and auto. The “king of visual computing” has a massive opportunity ahead of it, with digitalization becoming a critical business upgrade.

No. 1 Microsoft (NASDAQ: MSFT)

  • EPS Growth (YOY): 14%
  • Revenue Growth (YOY): 20%

As the world’s largest software maker, it’s only right Microsoft makes the top video games stocks list.

The company is best known for its Microsoft Office apps like Word, Excel, and PowerPoint. But the company also owns Xbox, one of the top-selling gaming devices.

Xbox devices are gaining market share. For the past two quarters, the device has outsold peers and is leading so far this quarter. Xbox content and services revenue increased by 4% in the third quarter.

Also, Microsoft’s growing cloud capabilities (Azure) help the company take advantage of the growing gaming market. Azure gaming revenue is up 66% so far in 2022. With this in mind, Microsoft’s diverse revenue stream lands it on top of the best video game stocks list to buy in 2022.

Between gaming (Xbox), business networking (LinkedIn), software (Office), and its growing cloud business, Microsoft is the definition of a blue-chip stock.

Is Now the Time to Invest in the Top Video Game Stocks List

Despite massive industry growth, video game stocks are down this year. Many of them sold off with tech stocks and have yet to recover. But the video game industry continues gaining steam.

With new segments like Esports and digital communities driving growth, video games are bigger than ever. The video game market is expected to continue expanding at a CAGR of 12.9% until 2030.

The companies on the video games stocks list above are pushing the industry to new heights. Every year, video games get more and more realistic. As a result, users from every age group are participating. With this in mind, gaming is driving record profits.

The future is bright for gaming companies. But many stocks are down this year with fears of a recession heightening and inflation surging. That said, this could be a chance for investors to buy the companies creating the future of entertainment.

The post Best Video Game Stocks List to Buy for Growth in 2022 appeared first on Investment U.

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Economics

Reduced myocardial blood flow is new clue in how COVID-19 is impacting the heart

Patients with prior COVID may be twice as likely to have unhealthy endothelial cells that line the inside of the heart and blood vessels, according to…

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Patients with prior COVID may be twice as likely to have unhealthy endothelial cells that line the inside of the heart and blood vessels, according to newly published research from Houston Methodist. This finding offers a new clue in understanding covid-19’s impact on cardiovascular health.

Credit: Houston Methodist

Patients with prior COVID may be twice as likely to have unhealthy endothelial cells that line the inside of the heart and blood vessels, according to newly published research from Houston Methodist. This finding offers a new clue in understanding covid-19’s impact on cardiovascular health.

In a new study published today in JACC: Cardiovascular Imaging, Houston Methodist researchers examined the coronary microvasculature health of 393 patients with prior covid-19 infection who had lingering symptoms. This is the first published study linking reduced blood flow in the body and COVID-19.

Using a widely available imaging tool, called positron emission tomography (PET), researchers found a 20% decrease in the ability of coronary arteries to dilate, a condition known as microvascular dysfunction. They also found that patients with prior COVID-19 infection were more likely to have reduced myocardial flow reserve – and changes in the resting and stress blood flow – which is a marker for poor prognosis and is associated with a higher risk of adverse cardiovascular events.

“We were surprised with the consistency of reduced blood flow in post covid patients within the study,” said corresponding author Mouaz Al-Mallah, M.D., director of cardiovascular PET at Houston Methodist DeBakey Heart and Vascular Center, and president elect of the American Society of Nuclear Cardiology. “The findings bring new questions, but also help guide us toward further studying blood flow in COVID-19 patients with persistent symptoms.”

Dysfunction and inflammation of endothelial cells is a well-known sign of acute Covid-19 infection, but little is known about the long-term effects on the heart and vascular system. Earlier in the pandemic, research indicated that COVID-19 could commonly cause myocarditis but that now appears to be a rare effect of this viral infection.

A recent study from the Netherlands found that 1 in 8 people had lingering symptoms post-covid. As clinicians continue to see patients with symptoms like shortness of breath, palpations and fatigue after their recovery, the cause of long covid is mostly unknown.

Further studies are needed to document the magnitude of microvascular dysfunction and to identify strategies for appropriate early diagnosis and management. For instance, reduced myocardial flow reserve can be used to determine a patient’s risk when presenting with symptoms of coronary artery disease over and above the established risk factors, which can become quite relevant in dealing with long Covid.

Next steps will require clinical studies to discover what is likely to happen in the future to patients whose microvascular health has been affected by COVID-19, particularly those patients who continue to have lingering symptoms, or long COVID.

This work was supported, in part, by grants from the National Institutes of Health under contract numbers R01 HL133254, R01 HL148338 and R01 HL157790.

———————–

For more information: Coronary microvascular health in patients with prior COVID-19 infection. JACC: Cardiovascular Imaging. (online Aug. 16, 2022) Ahmed Ibrahim Ahmed, Jean Michel Saad, Yushui Han, Fares Alahdab, Maan Malahfji, Faisal Nabi, John J Mahmarian, John P. Cook, William A Zoghbi and Mouaz H Al-Mallah. DOI: www.doi.org/10.1016/j.jcmg.2022.07.006

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War, peace and security: The pandemic’s impact on women and girls in Nepal and Sri Lanka

The impacts of COVID-19 must be incorporated into women, peace and security planning in order to improve the lives of women and girls in postwar countries…

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Nepalese girls rest for observation after receiving the Moderna vaccine for COVID-19 in Kathmandu, Nepal. (AP Photo/Niranjan Shrestha)

Attention to the pandemic’s impacts on women has largely focused on the Global North, ignoring countries like Nepal and Sri Lanka, which continue to deal with prolonged effects of war. While the Nepalese Civil War concluded in 2006 and the Sri Lankan Civil War concluded in 2009, internal conflicts continue.

As scholars of gender and war, our work focuses on the United Nations Security Council Resolution 1325 on women, peace and security. And our recently published paper examines COVID-19’s impacts on women and girls in Nepal and Sri Lanka, looking at policy responses and their repercussions on the women, peace and security agenda.

COVID-19 has disproportionately and negatively impacted women in part because most are the primary family caregivers and the pandemic has increased women’s caring duties.

This pattern is even more pronounced in war-affected countries where the compounding factors of war and the pandemic leave women generally more vulnerable. These nations exist at the margins of the international system and suffer from what the World Bank terms “fragility, conflict and violence.”

Women, labour and gender-based violence

Gendered labour precarity is not new to Nepal or Sri Lanka and the pandemic has only eroded women’s already poor economic prospects.

Prior to COVID-19, Tharshani (pseudonym), a Sri Lankan mother of three and head of her household, was able to make ends meet. But when the pandemic hit, lockdowns prevented Tharshani from selling the chickens she raises for market. She was forced to take loans from her neighbours and her family had to skip meals.

Some 1.7 million women in Sri Lanka work in the informal sector, where no state employment protections exist and not working means no wages. COVID-19 is exacerbating women’s struggles with poverty and forcing them to take on debilitating debts.

Although Sri Lankan men also face increased labour precarity, due to gender discrimination and sexism in the job market, women are forced into the informal sector — the jobs hardest hit by the pandemic.

Two women sit in chairs, wearing face masks
Sri Lankan women chat after getting inoculated against the coronavirus in Colombo, Sri Lanka, in August 2021. (AP Photo/Eranga Jayawardena)

The pandemic has also led to women and girls facing increased gender-based violence.

In Nepal, between March 2020 and June 2021, there was an increase in cases of gender-based violence. Over 1,750 incidents were reported in the media, of which rape and sexual assault represented 82 per cent. Pandemic lockdowns also led to new vulnerabilities for women who sought out quarantine shelters — in Lamkichuha, Nepal, a woman was allegedly gang-raped at a quarantine facility.

Gender-based violence is more prevalent among women and girls of low caste in Nepal and the pandemic has made it worse. The Samata Foundation reported 90 cases of gender-based violence faced by women and girls of low caste within the first six months of the pandemic.

What’s next?

While COVID-19 recovery efforts are generally focused on preparing for future pandemics and economic recovery, the women, peace and security agenda can also address the needs of some of those most marginalized when it comes to COVID-19 recovery.

The women, peace and security agenda promotes women’s participation in peace and security matters with a focus on helping women facing violent conflict. By incorporating women’s perspectives, issues and concerns in the context of COVID-19 recovery, policies and activities can help address issues that disproportionately impact most women in war-affected countries.

These issues are: precarious gendered labor market, a surge in care work, the rising feminization of poverty and increased gender-based violence.

A girl in a face mask stares out a window
The women, peace and security agenda can help address the needs of some of those most marginalized. (AP Photo/Niranjan Shrestha)

Policies could include efforts to create living-wage jobs for women that come with state benefits, emergency funding for women heads of household (so they can avoid taking out predatory loans) and increasing the number of resources (like shelters and legal services) for women experiencing domestic gender-based violence.

The impacts of COVID-19 must be incorporated into women, peace and security planning in order to achieve the agenda’s aims of improving the lives of women and girls in postwar countries like Nepal and Sri Lanka.

Luna KC is a Postdoctoral Researcher at the Research Network-Women Peace Security, McGill University. This project is funded by the Government of Canada Mobilizing Insights in Defence and Security (MINDS) program.

Crystal Whetstone does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Economics

Target Sets Sights on Holiday Season, Has Plan for High Inventory

Target said that it still expects spillover from inventory rightsizing to the tune of $200 million in the third quarter.

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Target said that it still expects spillover from inventory rightsizing to the tune of $200 million in the third quarter.

Target's  (TGT) - Get Target Corporation Report strategy is paying off as the company's stock falls on heavy volume following its earnings release. 

Normally, a profit miss as wide as Target's, 39 cents per share vs. expectations of 72 cents per share, would result in a bigger drop than Target's, but the retailer has been prepping the market for this miss all summer. 

The inventory the company built up during the height of the pandemic, as Americans shopped more from home, needs to go, and the only way get rid of the excess product is deep discounts. 

"Back in June, we announced that our team would be undertaking a bold effort to rightsize our inventory position in the categories for which demand patterns have radically changed," CEO Brian Cornell said during the company's earnings call. "While this decision had a meaningful short-term impact on our financial results, we strongly believe it was the best path forward."

Now, looking forward the company sees some overhang for the third quarter, but expects a big holiday season ahead. 

While some fear a recession and what it might do to the economy, Target is convinced that the holiday season will be strong.

Image source: John Smith/VIEWpress.

Target Aims for Holiday Season

While Target is focused on the back-to-school season currently underway, the company expects "spillover" from its inventory issues to be present during the third quarter to the tune of $200 million. 

But the company's own checks suggest that its shoppers are excited about the holiday season. 

"The one thing that seems to be very consistent is a guest and consumer who says they want to celebrate the holiday seasons so we certainly expect that they are going to be celebrating Halloween this year and actively trick or treating and hosting parties with friends and family," Cornell said.

"We know they're looking forward to Thanksgiving and they're going to look forward to celebrating the Christmas holidays and that comes down each and every week as we survey consumers and talk to our guests so that gives us great optimism for our ability to perform during these key holiday seasons"

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Not only does Target expect a strong quarter, but the company also expects favorable comps as fourth quarter headwinds from a year ago aren't present this time around. 

"Guests already have their sights set on upcoming holidays and seasonal moments in Q3 and beyond," Cornell said.

Target's Q2 Collapse

Target said adjusted earnings for the three months ending in July were pegged at 39 cents per share, down 89% from the same period last year and well shy of the Street consensus forecast of 72 cents per share.

Group revenues, Target said, rose 3.5% to $26 billion, essentially matching analysts' estimates of a $26.04 billion tally. Target said same-store sales rose 2.6%, again shy of the Refinitiv forecast of 3.2%, while operating margins fell to 1.2%, below the group's July guidance of a 2% level. 

Earlier this summer, Target cautioned that its bigger-than-expected 35% build-up in overall inventories over the first quarter would trigger price cuts, adding that deeper discounts would be needed to shift the excess goods onto a customer base that was already pulling back on discretionary spending.

Walmart  (WMT) - Get Walmart Inc. Report, Target's larger big box rival, said Tuesday that improving spending trends, as well as actions the group has taken to shift excess inventory, will ease some of the pressures it expects to face in terms of overall profits over the back half of the year.

Walmart said adjusted earnings for the three months ended in July came in at $1.77 per share, down one penny from the same period last year but well ahead of the Street consensus forecast of $1.62 per share.

Group revenues, the company said, were tabbed at $152.9 billion, an 8.4% increase from last year that topped analysts' estimates of $150.81 billion. U.S. same-store sales rose 6.5% from last year, the company said, firmly topping the Refinitiv forecast. 

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