Could News From This Warren Buffett Favorite Signal a Great Future for Video Game Stocks?
Warren Buffett's Berkshire Hathaway initially bought shares of leading game maker Activision Blizzard (NASDAQ: ATVI) in the fourth quarter of 2021. The Oracle of Omaha went on to accumulate a $5 billion stake following Microsoft's $95 per-share offer for the company in January. Berkshire's interest in one of the leading game makers in the world is a bullish indicator for the future of the video game industry.
Recent sales figures for top releases from Activision Blizzard, Electronic Arts (NASDAQ: EA), and Take-Two Interactive (NASDAQ: TTWO) could be sending a strong buy signal for investors. All three stocks delivered market-beating returns over the last decade but have fallen with the broader market. Here's why this is a great buying opportunity.
The narrative on Wall Street is that interest in video games is waning. Analysts have pointed to weak results at Roblox and slowing chip sales at Nvidia, which supplies graphics cards for PC gaming enthusiasts. Market researcher Newzoo expects industry sales to grow only 2% this year. However, it's still a massive industry approaching $200 billion, and recent interest in the biggest releases indicates that the industry could reaccelerate next year.
Source Fool.com
