Here’s a look at three mobile video game stocks with market caps of less than US$500 million for investor consideration.
In 2018, the worldwide game industry reached a whopping $137.9 billion, according to SuperData.
By the end of 2021, that number is expected to increase to $180.1 billion, with mobile and tablet gaming projected to account for $106.4 billion — or 59 percent of the market, Newzoo projects.
With the mobile gaming industry rising speedily, by 2020 the sector is expected to total more than half of the games market. The Asia-Pacific area will account for most of that revenue, with China leading the pack at roughly $37.9 billion in 2018, representing about 28 percent of all game revenues.
The projected growth of the mobile video games market is unsurprisingly making it a hot spot for investment opportunities — now and in the coming years.
Below the Investing News Network profiles three mobile video game stocks with market caps under US$500 million. The companies are listed in alphabetical order, and all numbers and figures were current as of September 26, 2018.
1. GigaMedia (NASDAQ:GIGM)
Market cap: US$32.72 million; current share price: US$3.01
First on our mobile video game stocks list is GigaMedia. Based in Taiwan, GigaMedia publishes online games, including its portal business, FunTown. FunTown is focused on the high-growth mobile and browser-based casual games and social casino games markets in Asia. FunTown provides various services, including avatars, family and friends messenger and tournaments, to name a few.
GigaMedia’s other online games include: Dragon, Yume 100, Shoumetsu ToshiMobile Game, FunTown Mahjong, Mahjong Tournament, Fun Vegas and 13.
2. Inspired Entertainment (NASDAQ:INSE)
Market cap: US$115.36 million; current share price: US$6.35
Next on our mobile video game stocks list is Inspired Entertainment, a company that supplies virtual sports, mobile gaming and server-based gaming systems. It operates over 25,000 digital gaming terminals and its virtual sports products are available in more than 35,000 venues and over 100 websites.
The company also launches roughly 15 new games on an annual basis, while its Virgo Remote Gaming Server Platform gives customers HTML5 games and technology for regulated markets.
3. The9 (NASDAQ:NCTY)
Market cap: US$43.27 million; current share price: US$1.82
The9 is a Chinese company specializing in web and mobile games. It develops and operates through its affiliates, its proprietary MMO and mobile games, such as Firefall and Song of Knights.
The9 also develops and operates Fun Box, a home entertainment set top box that enables online video and video games to be used on a TV.
With mobile video game stocks taking off, would you invest? Let us know your thoughts below.
This is an updated version of an article first published by the Investing News Network in 2017.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.