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Gaming and tech stocks on the rise: How much could you have made investing in Microsoft? | Personal Finance | Finance


By the end of 2020, there were 2.69 billion gamers in the world and UK adults alone purchased up to 21 million digital devices during lockdown. Money.co.uk personal finance expert Salmna Haqqi shared how investors can profit off these growing consumer trends by getting into gaming stocks and which ones they should be adding to their portfolios now.

During lockdown people turned to technology to help communicate, connect and stay entertained, often resulting in far too many impulse purchases.

It may also be argued that it was a case of right place right time, as with Nintendo Switch’s Animal Crossing New Horizons release coinciding with the start of the pandemic made it a breakout hit, raising profits by a record breaking 82 percent.

In comparison, the long-anticipated arrival of the PS5 fell into many manufacturing and distribution issues, making it almost impossible for consumers to actually buy.

eSports development and virtual reality also saw a big boost during lockdown as people craved an escape as much as professional sportsmen and women craved their activities, with some F1 drivers becoming a viral sensation playing as themselves on the F1 racing game.

Even for those that found themselves overworked, and with minimal free time, turned to new purchases or online shopping to take off some of their strain.

Ultimately, no one was untouched by technology during lockdown, and these bad spending habits meant many technology and gaming stocks skyrocketed during 2020 and some look to stay on this trajectory for the near future, alongside some exciting technological developments.

“During the pandemic, we saw many gaming companies make huge profits after a surge in demand for video games.

“Nintendo was a prime example of this,” Mr Haqqi commented.

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“While existing names like EA and Capcom are seeing renewed and steady growth, it’s the up and comers and disruptors in the industry that may make a big change in the industry over the next year or so. UFL, a new free-for-all online football simulation, is hoping to rival the existing mammoths such as Fifa (EA) and PES.

“Produced by Strikerz Inc., it’s an indication of the disruption that faces the gaming industry in the near future. Esports brands such as Esports Entertainment Group continue to see rises in their stock price compared with September 2020.

“However, as with every investment – putting money into gaming stock comes with its risks.

“Despite analysts and experts opinions, events such as the recent controversy with Activision Blizzard show that no stock is foolproof, and with every investment comes risk,” he noted.

As Mr Haqqi commented, there is a lot of disruption and outstanding new-starters in this industry, proven best when compared to reliable household names.

Investing £100 in Microsoft 12 months ago, when the stock price was only £202,66, would’ve seen one’s money grow by 42 percent, receiving a total return of £142,77.

While this doesn’t seem like the worst option, there are a vast variety of other stocks that would’ve seen one’s money go a whole lot further.

The best performer throughout lockdown was media and entertainment focused tech brand Avid Technology Inc.

Investing £100 in Avid 12 months ago has seen investors get a return of almost £400 with a 298 percent change in stock price.

Other gaming and technology stocks that have skyrocketed and how much a £100 investment 12 months ago would have given investors now:

The9 Limited – £207,43

Corsair Gaming Inc – £180,35

NVIDIA Corporation – £172,46

Super League Gaming Inc. – £168,75

Esports Entertainment Group Inc – £167,70

Investing has apparently become a more resilient form of savings, especially in light of the Bank of England’s decision to keep interest rates at a record low, but it’s generally advised to never invest more than one could afford to lose immediately.



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