The mobile video game sector is poised to account for nearly half of the overall video game industry by 2020. Here’s a look at 4 mobile video game stocks with market caps of less than $500 million for investor consideration.
In 2016, the worldwide game industry reached a whopping $91 billion, according to SuperData. By the end of 2017, that number is expected to increase to $108 billion, with mobile and tablet gaming projected to account for $46.1 billion–or 42 percent of the market, Newzoo projects.
With the mobile gaming industry rising–which Newzoo describes as “the most lucrative segment”–by 2020 the sector is expected to total more than half of the games market. Asia-Pacific will account for most of that revenue, with China leading the pack at roughly $27.5 billion in 2017.
On that note, the growth of the mobile video games market unsurprisingly makes it a hot spot for investment opportunities–now and in the coming years. Here, the Investing News Network (INN) profiles 4 mobile video game stocks with market caps of less than $500 million. The companies are listed in alphabetical order, and all numbers and figures are current as of October 10, 2017 with data compiled from Google Finance.
Market cap: $37.91 million; current share price: $3.43
First on our mobile video game stocks list is GigaMedia. Based in Taipei, 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.
Glu Mobile (NASDAQ:GLUU)
Market cap: $487.49 million; current share price $3.60
Glu Mobile develops and publishes mobile games for smartphones and tablets. The company’s IP games include: Contract Killer, Cooking Dash, Deer Hunter, Diner Dash, Dino Hunter:Deadly Shores, Eternity Warriors, Frontline Commando, Raving Rivals, Tap Sports Baseball. Its branded IP games include: Britney Spears: American Dream, Gordon Ramsay Dash, Kendall & Kylie, Kim Kardashian:Hollywood, and Sniper X with Jason Statham. Glu’s games can be found on the App Store, Google Play, Amazon Appstore, Facebook (NASDAQ:FB, Mac App Store and Windows Phone.
Inspired Entertainment (NASDAQ:INSE)
Market cap: $278.76 million; current share price: $12.45
Next on our mobile video game stocks list is Inspired Entertainment, a company that supplies virtual sports, mobile gaming and server based gaming systems. The company currently operates roughly 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.
Market cap: $56.97 million; current share price: $0.99
The9 is a Chinese company specializing in web and mobile games. More specifically, the company 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 on TV.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.