The coronavirus has been devastating.
Markets have crumbled. Businesses have closed. Schools are ending early. Hospitals are packed with patients. It’s gotten so bad 30 state governors have now issued a “stay at home” order. Those states have more than 225 million people, says CNN.
For investors, it’s been difficult to find opportunity. However, there are bright spots.
Not only have social distancing stocks like Zoom Video (ZM) exploded higher, but so have gaming-related stocks, like Activision Blizzard (ATVI) and Take-Two Interactive (TTWO). Even gaming ETFs, like the Global X Video Games & eSports ETF (HERO) and the Roundhill BITKRAFT eSports and Digital Entertainment ETF (NERD) are rallying well off recent lows.
“You’re now seeing [the market] differentiate between sectors and areas that can actually perform here [given the current environment, and] the data points are bearing it out,” says Roundhill Investments CEO Will Hershey, as quoted by CNBC. “Steam is hitting a new record concurrent player base every weekend, Twitch [is on track to break a new record] for viewership, and that’s going to be reflected in companies’ earnings.”
Verizon just reported a 75% week over week jump in gaming usage, as well. Video games like Call of Duty Warzone grew to 30 million players in just over a week. Even in China, there’s a gaming surge for companies like Tencent.
WHO Is Encouraging Folks to Play Video GamesEven the World Health Organization (WHO) is encouraging video games during the pandemic. “We’re at a crucial moment in defining outcomes of this pandemic. Games industry companies have a global audience – we encourage all to #PlayApartTogether. More physical distancing + other measures will help to flatten the curve + save lives,” tweeted Ray Chambers, U.S. ambassador to WHO.
