The steep climb of the Santa Claus rally has finally levelled off heading into the new year as volumes also drops.
Options flow has also been extremely light this week, but that’s to be expected with a large chunk of Wall Street on vacation.
With all of the scheduled catalysts in the books for 2021, the best thing traders can do is start thinking about what lies ahead for the markets in the year ahead…
That’s why I put together a list of my top sectors and stocks to watch out for in 2022 as we turn our sights to three names from the beaten-down video game industry.
In order for tech platforms like Twitch and YouTube and their parent companies to benefit from that trend, they’ll need content from top video game studios to keep eyeballs glued to screens around the globe.
And those stock pullbacks provide traders a fantastic opportunity to find outsized gains in my top 3 video game stocks for 2022…
Top 3 Video Game Stocks Looking to Break Out in 2022
Although the world is mostly reopened, screen times are still going up and kids are choosing to spend more time inside.
A recent study published by the American Medical Association found that 12-13 year olds doubled their pre-pandemic screen time to over seven and a half hours.
Judging by statistics from Twitch — the popular Amazon.com Inc. (NASDAQ: AMZN) streaming platform — that trend is holding through the end of 2021, as average viewership grew over 31% from 2.12 to 2.78 million…
As these games and opportunities to connect with the world’s best and most entertaining players continue to entrench themselves into popular culture, those viewership numbers will increase and so will ad revenue.
To put ourselves in position to capture the upside of this trend and take advantage of the recent gaming sell-off, I have three top video game stocks on my short list for 2022.
At the top of that list is Activision-Blizzard Inc. (Nasdaq: ATVI) — of all the game companies on the market, the makers of the popular franchises like Call of Duty, World of Warcraft and Candy Crush took the biggest hit in 2021.
We covered the drop as a series of nasty headlines about the company’s sexist work environment left the stock bleeding out as it dropped to new 52-week lows, and 45% off its February highs.
Shares have bounced nicely off of the new lows, but are still down about 25% for 2021. So if there’s a silver lining to the bad news, it’s that the problems are cultural and not related to its business model.
For the third quarter, ATVI reported monthly active users and time spent in game were consistent with 2020 levels. On top of that, operating income grew year-over-year, even as regions continued to re-opened.
Check out the short video below and let me drill down into my top 3 video game stocks for 2022, and stay tuned to New Money Crew as I share more of my market outlook and top stocks for the year ahead!
P.S. WealthPress Senior Strategist Roger Scott just covered his top 3 predictions, his top sector, his No. 1 stock and his No. 1 stock to avoid for the new year during his “Turning Point 2022” event!