3 Mobile Game Stocks That Will Soar 19% or Higher, According to Wall Street

: TCEHY | Tencent Holdings Ltd ADR News, Ratings, and Charts

TCEHY – The increasing penetration of smartphones, seamless internet access, and technological advancements are the key factors contributing to the growth of the mobile gaming industry. Given the industry’s solid growth prospects, Wall Street analysts expect fundamentally strong mobile gaming stocks Tencent Holdings (TCEHY), Skillz (SKLZ), and PLAYSTUDIOS (MYPS) to deliver significant upside in the coming months. Read on.

The COVID-19 pandemic has fueled enormous demand for online gaming platforms since people have been forced to spend much more time at home. In addition, seamless internet connectivity and increasing smartphone penetration have been driving the mobile gaming industry’s growth.

The integration of advanced technologies, such as augmented reality (AR) and virtual reality (VR), is expected to help the industry gain momentum in the coming months. The global market for mobile gaming is expected to reach $94.8 billion in 2022 and $139.5 billion by 2026, growing at an 11.5% CAGR .

Therefore, Wall Street Analysts expect fundamentally strong mobile gaming stocks Tencent Holdings Limited (TCEHY - Get Rating), Skillz Inc. (SKLZ - Get Rating), and PLAYSTUDIOS, Inc. (MYPS - Get Rating) to soar in the coming months.

Tencent Holdings Limited (TCEHY - Get Rating)

Headquartered in Shenzhen, the People’s Republic of China, TCEHY is an investment holding company that provides value-added services (VAS) and online advertising services internationally. The company’s operating segment comprises VAS; Online Advertising; FinTech and Business Services; and Others segments.

TCEHY’s revenue increased 7.9% year-over-year to RMB144.19 billion ($22.62 billion) in the fourth quarter, ended Dec. 31, 2021. Its operating profit increased 72.2% from its year-ago value to RMB109.72 billion ($17.22 billion), while its profit for the period grew 61.2% from the prior-year quarter to RMB95.71 billion ($15.02 billion). The company’s EPS rose 60.1% year-over-year to RMB 9.788.

Analysts expect TCEHY’s EPS to increase 23.5% year-over-year to $1.89 in fiscal 2023, while its revenue is expected to grow 6.9% year-over-year to 22.48 billion in the first quarter, ending March 31, 2022.

The 12-month median price target of $55.00 indicates a 19% potential upside. The stock closed its last trading session at $46.21.

Skillz Inc. (SKLZ - Get Rating)

SKLZ in San Francisco offers a mobile gaming platform that connects players in fair, fun, and meaningful competition. The company develops and supports a proprietary online-hosted technology platform that allows independent game developers to host tournaments and provide competitive gaming activity to end-users worldwide.

SKLZ recently announced a multi-year partnership with UFC®, a leading mixed martial arts organization. This partnership would enable SKLZ’s developers to create UFC-branded competitive mobile games that are co-promoted by UFC and SKLZ. This was revealed at the Game Developers Conference (GDC) in San Francisco. “Skillz’ partnership with UFC is part of our winning strategy that aligns Skillz’ disruptive competitive mobile games platform with the business of sport,” said Andrew Paradise, CEO of Skillz.

During the fourth quarter, which ended Dec. 31, 2021, SKLZ’S revenue increased 60.7% year-over-year to $108.85 million, while its gross profit grew 56% to $100.4 million. The cash and cash equivalents stood at $241.33 million for its fiscal year ending Dec. 31, 2021.

Analysts expect SKYZ’s revenue to increase 6.4% year-over-year to $89.04 million in the first quarter, ending March 31, 2022. Furthermore, it has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has gained 15.6% in price over the past month.

Among the seven Wall Street analysts that rated the stock, four rated it Buy, and three rated it Hold. The 12-month median price target of $4.92 indicates a 47.3% potential upside. The price targets range from a low of $2.50 to a high of $7.50. The stock closed the last trading session at $3.34.

PLAYSTUDIOS, Inc. (MYPS - Get Rating)

MYPS develops and publishes free-to-play casual games for mobile and social platforms internationally. The company is headquartered in Las Vegas.

During the fourth quarter, which ended Dec. 31, 2021, MYPS’s net revenues increased 12.4% year-over-year to $71.93 million. Its income from operations amounted to $3.25 million, versus a $17.87 million loss from operations in the year-ago quarter. It AEBITDA increased 36% year-over-year to $11.98 million.

Analysts expect MYPS’ revenue to increase 6.5% year-over-year to $75.43 million in the first quarter, ending March 31, 2022. The stock has gained 14.7% year-to-date and 8.4% over the past three months.

Among the two Wall Street analysts that rated the stock, one rated it Buy, and one rated it hold. Closing its last trading session at $4.53, the 12-month median price target of $6.38 indicates a 40.8% potential upside. The price targets range from a low of $4.75 to a high of $8.00.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


TCEHY shares were trading at $45.19 per share on Friday afternoon, down $1.02 (-2.21%). Year-to-date, TCEHY has declined -22.49%, versus a -5.12% rise in the benchmark S&P 500 index during the same period.


About the Author: Spandan Khandelwal


Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
TCEHYGet RatingGet RatingGet Rating
SKLZGet RatingGet RatingGet Rating
MYPSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How Low Will Stocks Go?

The S&P 500 (SPY) is testing the 200 day moving average with fears on tariffs and GDP that could push them even lower. Now is a good time to hear what 40 year investment veteran Steve Reitmeister says about the market outlook and odds of bear market.

Yelp Inc. (YELP) vs. TripAdvisor, Inc. (TRIP): Which Online Review Platform Offers Better Investment Potential?

The online review industry is anticipated to be bolstered by increasing penetration rates of connected devices, easy availability of high-speed internet, and advanced technology. To analyze which stock offers better investment potential, let’s compare online review platform stocks Yelp (YELP) and Tripadvisor (TRIP). Read on to find out…

3 Healthcare Stocks Tackling America’s Biggest Medical Challenges

From breakthrough treatments to AI-driven diagnostics, healthcare is evolving faster than ever. With increasing healthcare spending and innovative technologies transforming patient care, companies like AbbVie (ABBV), Gilead Sciences (GILD), and Bristol-Myers Squibb (BMY) are tackling some of the biggest challenges and could be poised for long-term growth. Read more…

Vimeo vs. Olo Inc.: Which Software Stock Is Poised for Greater Growth?

A rising adoption of software solutions by several industries is brightening the prospects for the software industry. Amid this, let’s compare Vimeo (VMEO) and Olo Inc. (OLO) to analyze which software stock is poised for greater growth. Read on to find out…

Why is Stock Market Outlook So Uncertain?

The S&P 500 (SPY) has quickly pushed back from the highs and once again on the verge of a break below the 100 day moving average. Why is this happening? And what comes next? 40 year investment veteran Steve Reitmeister shares his view and top stocks in the commentary that follows...

Read More Stories

More Tencent Holdings Ltd ADR (TCEHY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TCEHY News