A 16-Year-Old Just Made $3 Million… But Now It’s Your Turn to Cash In!
Video games are quietly becoming BIG business…
In case you missed it, 16-year-old Kyle Giersdorf (AKA “Bugha”) was crowned World Fortnite Champion over the weekend.
His prize: a massive trophy and $3 million cash.
To put that into perspective, Tiger Woods won $2.07 million for winning this year’s Masters tournament. And Novak Djokovic won $2.95 million for winning at Wimbledon last month.
But now it’s you turn to cash in!
Because if you can believe it, the gaming industry is still a largely untapped space.
And now’s your opportunity to cash in on major gaming profits… BEFORE the big boom!
My Favorite Way to Play Today’s Gaming Market
A long-time leader in the gaming market is Activision Blizzard, Inc. (ATVI).
The company grew its fame over the years with classic games such as Call of Duty and World of Warcraft.
Free-to-play games like Overwatch — a leading competitor to the high-profile game Fortnite — and mobile franchises such as the popular mobile game Candy Crush, strengthened ATVI’s hold in the industry.
The stock climbed to a high of $84.50 last October, and investors were looking forward to the upcoming innovations Activision had in store.
But since then, the company hit a rough patch… and is now trading for nearly HALF its value.
Here’s what happened… and why the stock’s sell-off is a GOOD thing for you…
The Future of Gaming Is Mobile
Activision has started to lag in monthly active user growth.
This is a key metric for investors that can make or break a media company’s stock in the short-term.
The company managed to deliver record sales and earnings performance in 2018. But a declining player base is a red flag to investors… especially in a largely new sector like gaming.
So investors punished the stock.
But their loss is our gain…
The company is actually making a major shift in its business…
It’s moving from traditional computer and console gaming (Xbox, PlayStation) to the lucrative mobile market.
Mobile gaming is set to generate more revenue than both PC and console gaming combined over the next three years, according to a Newzoo report.
Of all three types of gaming (PC, console and mobile), mobile already takes up 51% of the total market. And will continue growing to a predicted $106 billion industry in the near future.
And based on the stunning performance of its hit mobile game Candy Crush, the company’s about to flip the profit switch back to “ON.”
Over the last two years, Candy Crush lost users…
But the game actually grew its revenue by 28% over a two-year period through a big boost in spending per user.
And Candy Crush gave Activision a peek into how fruitful mobile games can really be.
Activision is now converting popular console games like Call of Duty straight to mobile devices with the launch of Call of Duty Mobile (coming in the next few months).
Bringing its big franchises to smartphones will allow the company to tap into high-growth markets in India and China.
In fact, China — not the U.S. — boasts the world’s largest mobile gaming user base.
So Activision is positioned to profit in the new world order of gaming.
Best of all, the stock is still incredibly cheap after December’s selloff.
ATVI now has a price-to-earnings (P/E) ratio of just 22 — down from 173 last June. That’s a nearly four-year P/E low for the stock!
But the stock won’t stay this cheap for long.
And the smart money is already moving in…
How You Cash in on Activision’s Rebound
I’m not one to pick bottoms, but ATVI looks like it’s finally rid of its sellers.
In fact, insiders are already moving in swiftly…
Just this year, net insider buying is up by over $3.5 million.
Shares just broke out of their vicious sideways trading action. And now have a strong support level around $50.
But the bulls are about to push this stock over the top…
And the next price target I’m eyeing is $60 — a 20% gain from its current price.
It’s not the $3 million windfall that 16-year-old Bugha experienced last week. But these gaming profits should be the first of many as the industry continues to boom.
Yours for Weekly Profits,
Floor Trader, The Daily Edge