Are Video Game Stocks Overbought?

Are Video Game Stocks Overbought?

Posted On June 2, 2020 2:20 pm

Among the cohort of stocks benefitting from the stay-at-home mandate stemming from the COVID induced shutdown have been videogame makers.  The lead gaming stocks such as “Activision Blizzard (ATVI)”, “Electronic Arts (EA)”, and “Take-Two Interactive Software (TTWO)” have not only outpaced the strong rebound of the SPDR S&P 500 Trust (SPY)” but have hit 52-week highs.

As you can see, some names such as TTWO are outpacing the SPY by some 50% since the March lows.

gamr s&p 500 stock chart 2020

The thesis is easy to understand as people stuck at home spend an increasing amount of time and money on video games for their entertainment.

Indeed, the recent earnings… Continue reading at StockNews.com
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Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.