Investing in video game stocks.

Years ago in high school I was part of a stock investment club. In those days Acclaim and Midway were two of the bigger companies that we looked at because of games like Mortal Kombat, Turok, etc. I'm just glad we decided against investing in either of them.
 
I bought about 50 shares of Activision a month or two before COD:MW2 came out. Oddly, Activision's stock has actually dropped about $2 a share since then.

Prior to that, I had Microsoft stock and had a little better luck turning that into some cash.

Outside of that, all my other stock purchases have been non-videogame or computer related.
 
[quote name='aaronmills']I bought about 50 shares of Activision a month or two before COD:MW2 came out. Oddly, Activision's stock has actually dropped about $2 a share since then.

Prior to that, I had Microsoft stock and had a little better luck turning that into some cash.

Outside of that, all my other stock purchases have been non-videogame or computer related.[/QUOTE]

The drop in price isn't all that odd. Most times the sales expectations have already been built into the stock price for upcoming releases. COD:MW2 didn't surprise analysts with its numbers. It sold a healthy amount (17 million was it?) but that was more or less expected.
 
it's not easy because you have analyst and reporters and those in between who are giving wrong reports and information to people.

for instance, activision makes a big noise about call of duty 6 modern warfare 2 and their stocks rise. journalists, analysts and other reports praise activision and their stocks goes up. then the company reports in and they didn't earn profits. their shares goes down.

just like the hardcore games themselves, there's a lot of hype in video games. so it is important to filter out the hype information, something that is very hard to do.

nintendo is doing very well, always making a profit. but for some reason people aren't investing in them. gee go figure when you have millions and billions of people who say bad things about them.
 
can i go back in time when the original GTA came out and buy rockstar stock? i actually thought about it, but since i was only like 15 at the time, and all my money went to video games.
 
I think you guys are a little too wishy-washy about stocks. You gotta do your research. You might think, "Hey! I like CoD and I heard it's selling well so that means I gotta buy stock with Activision!" That's just the first step.

But things like stock volatility, how much liability Activision has, how the financial documents were submitted (like how much debt was written off during asset acquisition), blah blah blah blah are all stuff that you need to keep in mind when you buy stock.

If you don't have enough time, dump money into an S&P index fund regularly instead of trying to hit a homerun with one stock in one shot.
 
Made good money off Activision stocks like 5 years ago.

Microsoft is a sound investment, even if it goes nowhere, they pay dividends each quarter which is very nice.
 
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