I see an exciting new stock IPO that I want all my clients to know about.
Anyone who has kids knows gaming and video games have never been more popular. And looking forward the industry is going to keep growing at an impressive clip.
Grand View Research, a global leading market research firm, is predicting the global and U.S. gaming industries will see significant growth in the next seven years.
Here are some more details from a recent report.
The global video game market size was valued at USD 151.06 billion in 2019 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.9% from 2020 to 2027. Technological proliferation and innovation in both hardware and software are expected to be the key factors driving the growth. The growing penetration of internet services coupled with the easy availability and access of games on the internet across the globe is also expected to keep the market growth prospects upbeat in the forthcoming years. Game developers are also constantly improvising and pushing the technological limits regarding the real-time rendering of graphics in the video game industry, which is further expected to propel the growth.
Here’s another factor to consider.
Coronavirus has led to a huge spike in video game sales that could be a sustained boost. Here are some more details from gamedaily.biz.
The NPD Group has released its monthly report examining games industry trends for March 2020, and the numbers show a sharp rise in sales driven largely by the coronavirus pandemic. According to the report, software sales grew 34% to $739 million last month compared to March 2019, and hardware sales grew an impressive 63%. In all, the games market generated $1.6 billion, which marks a 35% increase compared to last year.
Investors looking to cash in on this powerful trend have a hot new IPO to look at.
Corsair Gaming Just Started Trading on the NASDAQ Exchange
Corsair Gaming (NASDAQ: CRSR) is an industry leading gaming company that makes specialized gaming hardware, accessories and components.
This is how Corsair describes itself on its website.
Founded in 1994, CORSAIR has grown from pioneering the high-performance DRAM market into one of the world’s leading providers of high-performance gaming and streaming products. CORSAIR offers a complete range of products to equip gamers, enthusiasts, and esports athletes, including mechanical keyboards, precision gaming mice, wireless headsets, premium PC components, and the CORSAIR ONE fully-integrated gaming PC. With a company-wide commitment to quality, innovative design, advanced features and high-performance, CORSAIR products have won thousands of media and industry awards, earning their place in gamers’ hands and PCs following years of development and engineering by a team dedicated to building great products that they themselves would want to use.
Corsair has a top reputation in the industry because of the high quality of its products.
Investors can now buy shares of this company. Corsair just began trading on the NASDAQ last week. The company is currently valued at $1.8 billion – this is no small-time player.
Shares have done well since hitting the exchange. Corsair is up about 30%. Take a look at the 5-day chart below.
Looking forward I expect Corsair to do very well as the gaming industry expands in the next five years.
Want another gaming stock?
Take a look at Unity Software (NASDAQ: U) – a company that makes a gaming development platform.
Shares started trading on the NASDAQ two weeks ago and have been up sharply.
The Big Picture
The global gaming industry is expected to grow sharply in the next five years. Corsair Gaming and Unity Software are two industry leaders that just went public in the last few weeks. Keep an eye on both of these stocks – I expect both to do very well.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.
Author Michael Vodicka owns shares of Unity Software and Corsair Gaming.