Are Video Game Stocks Overbought?

by Options Sensei

Among the cohort of stocks benefitting from the stay-at-home mandate stemming from the COVID induced shutdown have been video game 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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