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.
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