FX.co ★ US gaming industry gains momentum

Shares of video games companies became new leaders of the US stock market. While the Nasdaq was trading mainly sideways in the second quarter, shares of Activision Blizzard, Electronic Arts, Sony, Nvidia, and NetEase showed quite impressive results. Some experts compare the video game industry with Hollywood, as the shares of corresponding companies have very high volatility. Just like in cinematography, if a video game enjoys popularity and is in demand, the company’s shares rise.

Growing popularity in the second quarter helped the gaming industry become a leader by growth rates in the US stock market. Investors pointed out increasing interest in releases of tech-giants such as Activision, EA, and Sony. Higher consumer activity influenced statistics with Sony shares adding 14 percent in the second quarter, EA gaining 14.5 percent, and Sony advancing by 17 percent. Shares of NetEase Inc. showed the largest surge jumping by 35 percent. Analysts note that it is neither a one-time event nor a seasonal surge; this tendency has been already gaining momentum for quite a long time. From June 2015 to June 2016, shares of 8 largest US gaming companies went up by 11 percent on average.

For the first time ever, the gaming industry managed to overtake the whole market, including large oil companies, banks, as well as Apple, and Google, by growth rates. It can be considered a real achievement as it means the sector beat the Nasdaq hi-tech companies as well.