TTWO - 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.
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Could News From This Warren Buffett Favorite Signal a Great Future for Video Game Stocks?