Trends tell us a lot about companies, sectors or stocks. They give us strong indications when it’s a good time to make a new investment.
But data also shows us when a stock or company is struggling. These indicators include:
- Sagging sales.
- Stock price volatility.
- Company trends not matching sector trends.
In investing, it’s easier to find opportunities to buy, but it’s much harder to be disciplined, stick to a strategy and know when it’s time to sell.
In this episode of The Bull & The Bear, I’ll show you a trend in the powerful video game industry and one massive company that’s falling short of expectations.
Video Game Sales Strong, but a Stock Giant Falls From Grace
The video game industry has been strong, especially since the COVID-19 pandemic last year.
Millions of Americans were stuck at home as businesses closed down to help halt the spread. So, we were left at home … to work and to shelter in place. But we were restless and needed something to do. This left us scrambling for ways to entertain ourselves in our own homes.
Video games became a way to break the stagnation.
Video Game Software Sales Grow 150.5% From 2010 to 2020
Since 2010, video game software sales have ballooned more than 150%. That growth shows no signs of slowing down.
In today’s episode of The Bull & The Bear, I’m going to show you that data (including our Green Zone Ratings system) tells me one video game stock giant is not growing as fast as its peers, thus it is a good time to sell.
The Bull & The Bear
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He is a certified Capital Markets & Securities Analyst with the Corporate Finance Institute and a contributor to Seeking Alpha. Prior to joining Money & Markets, he was a journalist and editor for 25 years, covering college sports, business and politics.