Zynga or Electronic Arts? By StockNews

0
28
© Reuters. Better Gaming Stock: Zynga or Electronic Arts?

The demand for gaming was accelerated by COVID-19 pandemic-led remote lifestyles last year. And while the economy’s reopening this year has been shifting people’s recreational focus to outdoor activities, the increasing availability of cloud gaming should continue driving the industry’s growth. So, Gaming giants Electronic Arts (EA) and Zynga (NASDAQ:) should benefit. But which of these stocks is a better buy now? Read more to find out. Electronic Arts Inc . (NASDAQ:) in Redwood (NYSE:) City, Calif., develops, markets, publishes and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres. In comparison, Zynga Inc . (ZNGA), in San Francisco, provides social game services internationally. The company develops, markets, and operates social games as live services on mobile platforms, social networking platforms, and personal computer consoles.

The COVID-19 pandemic has proved to be a blessing in disguise for the gaming industry, which saw a major surge in its consumer base because people spent most of their time at home during the worst of the public health crisis. Even though a semiconductor shortage and shift in consumer focus now toward outdoor activities could hurt the gaming industry in the near term, the increasing availability of online, mobile, and cloud gaming should deliver decent growth. Indeed, according to a Fortune Business Insights report, the global gaming market is expected to grow at a 13.2% CAGR between 2021 – 2028. Consequently, both EA and ZNGA should benefit.

EA has gained 4.7% in price over the past six months, while ZNGA generated negative returns. Also, EA’s 6.8% gains over the past year are higher than ZNGA’s negative returns.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.