Keep an eye on Electronic Arts (EA).
The stock has become exceptionally oversold after pulling back from $150 to $127.50. From here, we’d like to see it challenge its prior highs, especially with the video game market expected to grow even more this year.
Video game spending in the U.S. totaled $56.9 billion for 2020. That was 27% higher year over year, according to NPD. In December 2020 alone, sales were up to an impressive $7.7 billion.
For 2021, the video game industry could see global revenue of $189.3 billion, says Newzoo, adding there could be 2.8 billion gamers worldwide in 2021.
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