Global X Video Games & Esports ETF (NASDAQ: HERO)

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The Fund invests at least 80 percent of its total assets in the securities of the Solactive Video Games & Esports Index (Underlying Index) and in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on the securities in the Underlying Index. The Fund will also invest, under normal circumstances, at least 80 percent of its net assets, plus borrowings for investment purposes (if any), in Video Games & Esports Companies (as defined below), and in ADRs and GDRs based on such securities. The Fund's 80 percent investment policies are non-fundamental and require 60 days prior written notice to shareholders before they can be changed. The Fund may lend securities representing up to one-third of the value of the Funds total assets (including the value of the collateral received).

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Electronic Arts Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) shares are trading higher premarket on Wednesday after the company reported third-quarter revenue of $1.883 billion, beating <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43478111/electronic-arts-reports-q3-fy25-results" rel="noreferrer noopener">the consensus of $1.654 billion</a>.
Net bookings reached&nbsp;$2.215&nbsp;billion, missed the consensus estimate of $2.325 billion.
Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/25/02/43456467/electronic-arts-set-to-report-q3-earnings-amid-analyst-downgrade-fc-franchise-concerns-16-year-to-date-stock-decline" rel="noreferrer noopener">Electronic Arts Set To Report Q3 Earnings Amid Analyst Downgrade, FC Franchise Concerns, 16% Year-To-Date Stock Decline</a>
The company said that American Football witnessed double-digit growth in weekly active users year-over-year in the quarter and is on pace to surpass&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$1 billion&nbsp;in net bookings for FY25.</a>
In the quarter, EA introduced Battlefield Labs, a player-driven testing initiative designed to foster innovation ahead of the franchise&#8217;s anticipated FY26 release.
EPS was $1.11 against the $1.07 reported in the prior year quarter.
Notably, last month, the company reported preliminary quarterly numbers, expecting a mid-single-digit decline largely due <a target="_blank" href="https://www.benzinga.com/general/gaming/25/01/43146917/electronic-arts-stock-is-sliding-after-the-close-whats-going-on" rel="noreferrer noopener">to a slowdown in Global Football</a>.
Operating cash flow was&nbsp;$1.176&nbsp;billion&nbsp;for the quarter. As of December 31, cash and cash equivalents stood at&nbsp;$2.78 billion.
Dividend: The company declared a quarterly dividend per share of&nbsp;$0.19, payable on March 19, to stockholders of record as of February 26, 2025.
During the quarter, EA repurchased 2.4 million shares for $375 million. The company plans for an accelerated stock repurchase of $1 billion, aiming to reach $2.5 billion in stockholder returns within the first year of its $5 billion authorization.
Outlook: For the&nbsp;fourth quarter, Electronic Arts expects&nbsp;EPS of&nbsp;$0.65 &#8211; $1.00&nbsp;and revenue of $1.682 billion &#8211; $1.832 billion. The company expects net bookings of $1.444 billion to $1.594 billion in the quarter.
For FY25, the company sees EPS&nbsp;of $3.90 &#8211; $4.25 (previous view $3.82&nbsp;&#8211;&nbsp;$4.33) and revenue of $7.25 billion &#8211; $7.40&nbsp;billion (prior view $7.40 billion&nbsp;&#8211;&nbsp;$7.70 billion).
Also, the company projects net bookings of around $7.00 billion to $7.15 billion in the year, down from the prior outlook of $7.50 billion&nbsp;to&nbsp;$7.80 billion.
Andrew Wilson, CEO of Electronic Arts, said, &#8220;The record success of our&nbsp;EA SPORTS FC 25 Team of the Year event demonstrates our creative teams&#8217; ability to adapt, innovate, and execute at scale.&#8221;
&#8220;As we build on this momentum across EA, we are confident in a return to growth in FY26 and beyond as we bring our next wave of iconic entertainment to players and fans worldwide.&#8221;
Investors can gain exposure to the stock via&nbsp;Roundhill Video Games ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NERD#NASDAQ">NERD</a>) and&nbsp;Global X Video Games &amp; Esports ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>).
Price Action: EA shares are up 2.99% at $124.87 premarket at the last check Wednesday.
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Photo via Shutterstock.

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What's Going On With Electronic Arts Stock Today?

Electronic Arts Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) shares traded higher premarket on Wednesday after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41610396/electronic-arts-reports-strong-q2-fy25-results" rel="noreferrer noopener">reported second-quarter results</a>.
The company reported net revenue of $2.025 billion, missing the consensus of $2.037 billion. EPS of $1.11 exceeded <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">the estimate of $0.88</a>.
Net bookings reached $2.079 billion, a second-quarter record that surpassed the top end of the guidance range of $2.050 billion.
The company said that American Football is on pace to surpass $1 billion in net bookings for FY25, with playtime up over 140% year-over-year and more than double the number of new players joining the community.
Operating cash flow generated was $234 million for the quarter. As of September 30, cash and cash equivalents stood at $2.3 billion.
The company declared a quarterly dividend per share of $0.19, payable on December 18 to stockholders of record as of November 27.
During the quarter, EA repurchased 2.6 million shares for $375 million as part of its stock buyback program.
Outlook: For the third quarter, Electronic Arts expects third-quarter EPS of&nbsp;$0.85 &#8211; $1.02 (vs. estimate of $1.33) and revenue of ~$1.875 billion &#8211; $2.025 billion <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">(vs. consensus of $2.508 billion)</a>.
For the full fiscal year, the company raised EPS guidance to $3.82 &#8211; $4.33 (from $3.34 &#8211; $4.00) vs. an estimate of $3.98 and revenue to $7.4 billion &#8211; $7.7 billion&nbsp;(from &nbsp;$7.1 billion &#8211; $7.5 billion)<a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/40051832/electronic-arts-q1-earnings-highlights-college-football-madden-soccer-video-games-building-momentum" rel="noreferrer noopener"> vs&nbsp;consensus of $7.60 billion</a>.
Also, the company projects net bookings of around $7.500 billion to $7.800 billion (vs. $7.3 billion &#8211; $7.7 billion prior).
In September, EA shared an in-depth look at the initiatives and experiences driving its strategic pillars to accelerate growth and outlined how AI drives efficiency, <a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40910079/what-happened-with-electronic-arts-stock-today" rel="noreferrer noopener">expansion and transformation at EA</a>.
Investors can gain exposure to the stock via&nbsp;Roundhill Video Games ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NERD#NASDAQ">NERD</a>) and Global X Video Games &amp; Esports ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>).
Price Action: EA shares are up 1.24% at $147.43 premarket at the last check on Wednesday.
Photo via Shutterstock
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Electronic Arts Q2 Earnings: EPS Beat, Solid Bookings, Football's $1 Billion Run In Sight & More

Flutter Entertainment Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLUT#NYSE">FLUT</a>) shares were trading lower in the premarket session on Friday after the company announced the immediate departure of CFO Paul Edgecliffe-Johnson, who will be replaced by Rob Coldrake.
The stock has reversed the losses and is trading higher at the last check on Friday
Coldrake, the CFO of Flutter&#8217;s international business since 2020, will take on a new role focusing on the American market.
The international sports betting and gambling company is shifting its primary share listing from London to New York, as the U.S. market has become its most prominent due to relaxed gambling laws that have spurred growth, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-31/flutter-swaps-cfo-for-executive-who-can-spend-more-time-in-us?srnd=technology-vp&amp;sref=TBDibEcD'" rel="noreferrer noopener">reports</a>.
However, the transition has faced challenges. A New York court revived a shareholder lawsuit against FanDuel&#8217;s combination with Flutter, and a new tax on sports betting in Illinois temporarily impacted the company&#8217;s shares.
In March, Flutter Entertainment <a target="_blank" href="https://www.benzinga.com/news/earnings/24/03/37929119/why-flutter-entertainment-shares-are-gaining-today" rel="noreferrer noopener">reported fiscal 2023</a> revenue growth of 24.6% year over year to $11.79 billion. Adjusted EBITDA rose by 45.4% to $1.87 billion, and adjusted EPS was up 25.8% to $3.51.
Flutter Entertainment stock lost 4% in the last 12 months. Investors can gain exposure to the sports betting and gambling sector via VanEck Video Gaming And ESports ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESPO#NASDAQ">ESPO</a>) and Global X Video Games &amp; Esports ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>).
Price Action: FLUT shares are trading higher by 1.76% to $191.20 at the last check on Friday.
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What's Going On With Sports Betting And Gambling Company Flutter Entertainment On Friday?

NetEase, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>)&nbsp;reported fiscal first-quarter 2024 revenue growth of 7.2% year-on-year to $3.72 billion (26.9&nbsp;billion Chinese yuan), missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38979995/netease-announces-first-quarter-2024-unaudited-financial-results" rel="noreferrer noopener">analyst consensus estimate of $3.79 billion</a>.
The Chinese gaming&nbsp;player's&nbsp;adjusted EPADS of $1.81 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $1.79</a>.
Segments and margins:&nbsp;Games and related value-added services revenues grew 7.0%&nbsp;year over year&nbsp;to $3.0 billion.&nbsp;The corresponding gross margin increased by 280 bps to 69.5%, attributable to changes in revenue contribution from different platforms and revenues from&nbsp;NetEase's&nbsp;self-developed games.
Youdao,&nbsp;Inc.'s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAO#NYSE">DAO</a>)&nbsp;revenue climbed by 19.7%&nbsp;year over year&nbsp;to $192.8 million,&nbsp;but&nbsp;the corresponding gross margin declined by 270 bps to 49.0%, mainly due to increased revenue contribution from its online marketing services.
Cloud&nbsp;Music's&nbsp;revenues were $281.1 million, up&nbsp;3.6% year over year, and its gross margin expanded by 1,560 bps to 38.0%.
Innovative businesses and other revenue grew by 6.1%&nbsp;year over year&nbsp;to $272.8 million, and the gross margin increased by 800 bps to 33.4% due to improved gross profit&nbsp;margins&nbsp;from Yanxuan and several other businesses included within the segment.
As&nbsp;of March 31, 2024, NetEase held $15.7 billion in cash and equivalents and generated $1.3 billion in operating cash flow.
Dividend:&nbsp;The board of directors has approved a dividend of&nbsp;$0.4950&nbsp;per ADS&nbsp;for the first quarter of 2024.
"With a portfolio featuring premium-quality games and more&nbsp;diversification across genres, we are well-positioned to extend our exciting gaming experiences to audiences around the globe,"&nbsp;said Mr.&nbsp;William Ding, Chief Executive Officer and Director of NetEase.
NetEase stock gained over 17% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;VanEck Video Gaming And&nbsp;ESports&nbsp;ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESPO#NASDAQ">ESPO</a>) and&nbsp;Global X Video Games &amp; Esports ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>).
Price Action:&nbsp;NTES shares traded lower by 3.62% at $94.80 premarket at&nbsp;the last check Thursday.

Tech

NTES

NetEase's Q1 Earnings: Gaming Giant Shows Resilience with Growth in Cash Flow and Cloud Music

Bilibili Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>)&nbsp;reported fiscal first-quarter 2024 revenue of $784.5 million (5.66 billion Chinese yuan), up by 12% year-on-year, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g38981066/bilibili-inc-announces-first-quarter-2024-financial-results" rel="noreferrer noopener">analyst consensus estimate of $794.2 million</a>.&nbsp;
The Chinese video-sharing&nbsp;platform's&nbsp;adjusted EPADS loss of $(0.15) beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus loss estimate of $(0.17)</a>. The&nbsp;stock price slid after the results.
Drivers:&nbsp;Average daily active users (DAUs) climbed 9% Y/Y to 102.4 million.
Revenues from mobile games were $136.1 million, down 13%&nbsp;Y/Y, mainly due to decreased revenues from certain legacy games.&nbsp;
Value-added&nbsp;services (VAS)&nbsp;revenues&nbsp;grew 17%&nbsp;Y/Y&nbsp;to $350.3 million, led by increased revenues from live broadcasting and other&nbsp;value-added services.&nbsp;
Advertising increased by 31%&nbsp;Y/Y&nbsp;to $231.1 million. Revenue from IP derivatives and others (formerly known as e-commerce) decreased 5%&nbsp;Y/Y&nbsp;to $67.1 million.
Bilibili held $1.79 billion in cash and equivalents as of March-end.
Rui Chen, chairman and chief executive officer of Bilibili, said,&nbsp;&#8220;Our community is thriving with our increasingly diverse content, driving DAUs up 9% year over year to 102.4 million. MAUs in the first quarter also reached a new high of 341.5 million, up 8% year over year.&nbsp;Users&nbsp;engagement continued to be strong with average daily time spent hitting 105 minutes, another new high in our operating history.&#8221;&nbsp;
Bilibili&nbsp;stock lost 13% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Global X&nbsp;Video Games &amp; Esports ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>) and&nbsp;Amplify ETF&nbsp;Trust Amplify Video Game Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GAMR#NYSE">GAMR</a>).
Price Action: BILI shares traded lower by 1.72% at $15.41 in the premarket session at the last check Thursday.
Image Credits &#8211; Shutterstock

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Bilibili's DAUs Surge 9%, CEO Highlights Community Growth Despite Missed Revenue Estimates

HUYA Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUYA#NYSE">HUYA</a>) reported fiscal first-quarter 2024 revenue of $208.31 million, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38783393/huya-inc-reports-first-quarter-2024-unaudited-financial-results" rel="noreferrer noopener">analyst consensus estimate of $206.83 million</a>.
The Chinese game live-streaming platform's&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">adjusted earnings per ADS</a><a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">&nbsp;</a><a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">was $0.05</a>.&nbsp;
Live streaming revenues declined to 1.26 billion Chinese yuan ($174.6 million) from 1.86 billion Chinese yuan in the prior-year quarter, owing to the soft macro and industry environment and proactive business adjustments.
Meanwhile, game-related services, advertising&nbsp;and other&nbsp;revenues&nbsp;(formerly known as advertising and other revenues) increased by 137.6%&nbsp;Y/Y&nbsp;to $33.7 million,&nbsp;led by&nbsp;game advertising and distribution revenue growth.
The average mobile MAUs&nbsp;of Huya Live&nbsp;for the first quarter of 2024 was 82.6 million, compared with 82.1 million for the same period of 2023.
Paying users on Huya Live increased Q/Q, rising to 4.4 million, reflecting a&nbsp;strong&nbsp;base of high-value gamer users.
The gross margin was 14.7% for the quarter&nbsp;vs. 13.7%, mainly due to lower revenue sharing fees and content costs&nbsp;ratio.
As of March 31, 2024, the company had cash and cash equivalents, short-term and long-term deposits&nbsp;of $1.30 billion.
HUYA stock gained over 36% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Jacob Funds Inc. Jacob Forward ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JFWD#NYSE">JFWD</a>) and&nbsp;Global X Video Games &amp; Esports ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>).
Price Action:&nbsp;HUYA shares are up 6% at $4.68&nbsp;at the last check Monday.

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HUYA Beats Revenue Estimates in Q1, Yet Faces Challenges in Game Streaming Sector

Take-Two Interactive Software Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>), the maker of the Grand Theft Auto franchise, plans to close two subsidiaries, Roll7 and Intercept Games, as part&nbsp;<a target="_blank" href="https://www.benzinga.com/news/22/10/29264898/take-two-to-shut-down-major-gaming-studio-in-a-surprise-move-closure-to-cost-65-jobs" rel="noreferrer noopener">of mass layoffs</a>.
Roll7, based in London, known for Rollerdrome, and Intercept Games, in Seattle, known for Kerbal Space Program 2, will be shut down, affecting around 70 jobs, Bloomberg&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-01/take-two-interactive-shuts-down-two-game-studios?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
Last month, Take-Two announced a 5% staff reduction, which will affect roughly 600 employees, including those from the Private Division, founded in 2017.&nbsp;
Alan Lewis, Take-Two&#8217;s VP for communications, stated no additional details on the layoffs but confirmed ongoing updates to Kerbal Space Program 2.&nbsp;
The gaming industry has seen&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36783057/microsofts-major-gaming-shake-up-1-900-layoffs-and-leadership-changes-in-post-acquisition-strategy" rel="noreferrer noopener">widespread layoffs recently</a>, with major players like&nbsp;Sony&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>), EA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), and&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) also reducing staff and closing subsidiaries.
Microsoft fired 1,900 employees&nbsp;across&nbsp;Activision Blizzard and Xbox&nbsp;in January, equivalent to 8% of its Gaming division.
In December,&nbsp;Tencent Holding Ltd&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/12/36286738/gaming-giant-tencent-shuts-down-team-kaiju-a-strategic-shift-or-a-new-challenge-ahead" rel="noreferrer noopener">shut down US game</a>&nbsp;studio Team Kaiju, shifting its focus to the Western market. In November, TikTok parent&nbsp;ByteDance&nbsp;Ltd,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/11/35961401/tiktoks-parent-company-bytedance-to-fire-hundreds-pulls-the-plug-from-gaming" rel="noreferrer noopener">shared plans to</a>&nbsp;shut down its principal brand, Nuverse, marking its retreat from the gaming industry.
Meanwhile,&nbsp;Walt Disney Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) and&nbsp;Netflix Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) renewed their focus on&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/02/36993564/disney-invests-1-5b-in-fortnite-owner-epic-games-in-biggest-ever-gaming-entry-posts-q1-earnings-bea" rel="noreferrer noopener">the gaming industry</a>.
In February, Disney announced&nbsp;a $1.5 billion investment in Fortnite game&nbsp;owner Epic Games.&nbsp;
Netflix&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/general/entertainment/24/01/36507253/gaming-for-profit-netflix-reportedly-considers-monetization-of-its-game-offerings" rel="noreferrer noopener">gaming library grew</a>&nbsp;to 86 titles in 2023. The streaming giant looks to&nbsp;double it by adding 90 more titles in 2024.
Take-Two Interactive Software stock gained over 17% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Roundhill Video Games ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NERD#NASDAQ">NERD</a>) and&nbsp;Global X Video Games &amp; Esports ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>).
Price Action:&nbsp;TTWO shares closed lower by 0.05% at $142.74 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image credits: Sergei Elagin on Shutterstock

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Grand Theft Auto Parent Shuts Two Iconic Game Studios as Part of Sweeping Layoffs

Benchmark&nbsp;analyst Fawne Jiang maintained a Buy rating on&nbsp;Bilibili Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>) with a&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/BILI/analyst-ratings" rel="noreferrer noopener">price target of $15, lowered from $21</a>.
Jiang said Bilibili has executed solidly on advertising, with revenue growth accelerated to 28% Y/Y in&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/03/37535373/whats-going-on-with-the-bilibili-stock-thursday" rel="noreferrer noopener">the fourth quarter</a>.&nbsp;&nbsp;
He expects continued robust ad growth in fiscal 2024, underpinned by growing DAU/traffic, rising ad load via ad placement penetration, and ad tech-driven efficiency improvement.&nbsp;&nbsp;
The analyst flagged the company&#8217;s encouraging headways in offering integrated marketing solutions in the e-commerce and gaming verticals. He said they replicate the model for other bourgeoning industries like FMCG, Auto, 3C, internet service, finance, and education.&nbsp;&nbsp;
As per Jiang, the unique valuation of Bilibili&#8217;s core user base (young professionals) sets the platform apart for potential outperformance on ads in general.&nbsp;&nbsp;
On the flip side, membership growth will likely remain muted while live streaming faces potentially rising competition as the industry growth is moderating.&nbsp;&nbsp;
Furthermore, Jiang added that there is a lack of visibility on mobile game growth in the future.&nbsp;
With recent resource reductions, the segment will remain challenging in the foreseeable future. Given a dampened growth outlook, he cut his fiscal 2024 revenue estimate.&nbsp;
Jiang projected a first-quarter revenue of RMB 5.596 billion.
Mizuho&nbsp;analyst James Lee maintained Bilibili with a Buy and lowered the price target from $16 to $15.
Lee said that Bilibili reported in-line revenue and beat operating margin by ~600bps, driven by an acceleration in advertising and Value-added services (VAS) and continued cost-control efforts.
However, while its advertising business remains strong and continues gaining share into fiscal 2024, he expects live streaming to slow slightly due to revenue-sharing optimization.&nbsp;
In addition, Lee applauded management&#8217;s decision to terminate additional game projects despite near-term revenue headwinds.&nbsp;
Bilibili remains on track to transition from an ACG niche platform to a mass-market performance-based advertising powerhouse backed by its unique content ecosystem.&nbsp;
He expects ad revenue growth to accelerate in the first quarter. For 2024, the analyst expects more product innovations such as automatic ad placement, improved ad inventory, ad load, and improved monetization from newer verticals, including auto, internet services, and more.
However, he expects VAS segment growth to slightly decelerate in the first quarter and fiscal 2024 due to its higher base and the ongoing management of revenue-sharing towards the breakeven target.
Lee expects Games segment revenue to remain flattish into the first quarter due to project terminations amid a government crackdown in the sector.
Lee projected first-quarter revenue of RMB 5.59 billion (prior RMB 5.83 billion).
Investors can gain exposure to the stock via&nbsp;Global X Video Games &amp; Esports ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>) and&nbsp;Amplify ETF Trust Amplify Video Game Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GAMR#NYSE">GAMR</a>).
Price Action: BILI shares traded higher by 4.20% at $11.04 on the last check Friday.
Photo via Wikimedia Commons

Price Target

Reiteration

Analyst Ratings

Trading Ideas

Bilibili Gains Analyst Praise for Advertising Growth, Despite Gaming Sector Headwinds

Bilibili Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>) reported fourth-quarter fiscal 2023 revenue of $894.3 million (RMB6.3 billion), up by 3% year-on-year, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/g37528886/bilibili-inc-announces-fourth-quarter-and-fiscal-year-2023-financial-results" rel="noreferrer noopener">consensus of $887.3 million</a>.&nbsp;
The Chinese video-sharing platform&#8217;s adjusted EPS loss of $(0.19) beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus loss of $(0.22)</a>. The stock price plunged after the results.
Drivers:&nbsp;Average daily active users (DAUs) climbed 8% Y/Y to 100.1 million.
Revenues from mobile games were $141.8 million, up 12% Y/Y, mainly attributable to the high base from the release of&nbsp;Space Hunter 3&nbsp;in the second half of 2022.&nbsp;
Value-added services (VAS) revenues grew 22% Y/Y to $402.4 million, led by increased revenues from live broadcasting and other value-added services.&nbsp;
Advertising increased by 28% Y/Y to $271.7 million. Revenue from IP derivatives and others (formerly known as e-commerce) decreased 51% Y/Y to $78.3 million, mainly attributable to a decrease in revenues from e-sports copyright sublicensing.
Bilibili held $2.1 billion in cash and equivalents as of December 31, 2023.
Investors can gain exposure to the stock via&nbsp;Global X Video Games &amp; Esports ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HERO#NASDAQ">HERO</a>) and&nbsp;Amplify ETF Trust Amplify Video Game Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GAMR#NYSE">GAMR</a>).
Price Action: BILI shares traded lower by 6.57% at $10.10 in the premarket session on the last check Thursday.
Photo via Wikimedia Commons

What's Going On With The Bilibili Stock Thursday?

According to a CNBC article, Nintendo (OTCMKTS: NTDOY) experienced a decline in both its profits and sales, attributed to a fall in the sale of its flagship gaming console, the Nintendo Switch. Covering the period from April 2022 to March of this year, Nintendo reported revenue of 1.6 trillion yen for its full fiscal year, aligning with its own forecast but reflecting a 5.5% year-on-year decrease.
Net profit for the year was down more than 9% year-on-year, at levels of 432.7 billion yen. However, the company performed better than its own estimate of 370 billion yen. The box office success of &quot;The Super Mario Bros. Movie&quot; has exceeded expectations, enabling Nintendo to expand its business beyond consoles and venture into diversified avenues.
<h3>Nintendo Switch Sales in Numbers</h3>
The Japanese gaming giant managed to sell 17.97 million units for the fiscal year from its renowned Nintendo Switch console series, meeting its own projection of 18 million units. However, this figure represents a 22% decrease compared to the previous fiscal year, which saw sales of just over 23 million Switch units.
According to Nintendo, production was affected by semiconductor and component shortages until approximately the end of summer. Additionally, the company also stated that it did not witness the same level of sales growth during the holiday season as it had experienced in the previous year.
Nintendo is gearing up to launch The Legend of Zelda: Tears of the Kingdom, an eagerly anticipated installment in one of its flagship franchises. However, the company anticipates a continued decline in software sales, projecting 180 million units for the current fiscal year. Nintendo also disclosed its expectation of a 21.4% decrease in net profit, forecasting it to reach 340 billion yen by the end of March 2024.
<h3>Has Switch Sales Reached its Peak?</h3>
Per Reuters, the Kyoto-based gaming company continues to strengthen its games portfolio and overcome supply chain challenges; it recognizes the waning demand for the Nintendo Switch, now in its seventh year on the market. Investors fear that the sale of the aging console has peaked.
Industry experts believe that the launch of a potential successor to the Nintendo Switch, despite its remarkable sales of over 125 million units, is unlikely to happen this fiscal year, according to the company&#39;s guidance.
<h3>ETFs in Focus</h3>
Below, we highlight a few ETFs with exposure to Nintendo.
<h3>Roundhill Video Games ETF</h3>
The Roundhill Video Games ETF (NYSE Arca: NERD) offers investors exposure to the video game sector by providing investment results that closely correspond to the performance of the Nasdaq CTA Global Video Games Software Index.
The fund has 38 securities in its basket, with Nintendo being a highly allocated company with a share of 16.69%. NERD also has an allocation in companies like Electronic Arts EA and Roblox RBLX, with 10.35% and 6.22% shares, respectively.
The fund has an asset base of $26 million and charges an annual fee of 0.50%. It trades at a daily average volume of about 3,700 shares. NERD has generated returns of 10.75% year to date and earned 7.30% in the past three months.
<h3>Wedbush ETFMG Video Game Tech ETF</h3>
The Wedbush ETFMG Video Game Tech ETF (NYSE Arca: GAMR) seeks to provide investment results that correspond generally to the price and yield performance of the EEFund Video Game Tech Index. The fund has a basket of 87 securities and has exposure to Nintendo with a share of 2.60%. The top allocated company in the fund is UbiSoft Entertainment UBSFY with a share of 3.07%.
GAMR has gathered an asset base of $51.36 million and charges an annual fee of 0.75%. It has a traded daily average volume of around 3,200 shares. The fund has earned returns of 8.45% year to date, along with 1.4% in the past three months.
<h3>Global X Video Games &amp; Esports ETF</h3>
The Global X Video Games &amp; Esports ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hero#NASDAQ">HERO</a>) seeks to provide investment results that correspond generally to the performance of the Solactive Video Games &amp; Esports Index. With an asset basket of $51.32 million, the fund has exposure of 5.78% to Nintendo. Take-Two Interactive Software TTWO is the highest allocated company in HERO.
Charging an annual fee of 0.73%, the fund has a traded daily average volume of about 16,000 shares. HERO has earned 8.0% year to date and 2.74% over the past three months.
<h3>VanEck Video Gaming And ESports ETF</h3>
The VanEck Video Gaming and Esports ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/espo#NASDAQ">ESPO</a>) seeks to replicate as closely as possible the performance of the MVIS Global Video Gaming and Esports Index. The fund has a basket of 26 securities and has exposure of 5.90% to Nintendo. NVIDIA NVDA is the top allocated firm in the fund.
Having amassed an asset base of $280.16 million, the fund charges an annual fee of 0.56%. It has a traded daily average volume of about 39,000 shares. The fund has generated returns of 20.89% year to date and 7.43% over the past three months.
Image by&nbsp;<a href="https://unsplash.com/@currentspaces">Brandon Romanchuk</a>&nbsp;in <a href="https://unsplash.com/photos/Cn7LleYXuTk">Unsplash</a>

Asia

Earnings Misses

Entertainment

Gaming

Markets

ETFs

General

NVDA

NYDOY

Video Game ETFs In Focus As Nintendo's Sales Take A Dive

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
GameStop (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gme#NYSE">GME</a>) giveth and it taketh away. The brazen short squeeze orchestrated by members of the Reddit forum WallStreetBets is on life support, at least for the time being, after shares of the video game retailer plunged 60% Tuesday, taking the stock down to $90. Just last week, it hit $483.
What Happened: Some market observers believe the run on GameStop shorts <a href="https://www.benzinga.com/markets/bonds/21/02/19450721/gamestop-shares-unaffected-as-janus-capital-bond-investor-bill-gross-says-gamestop-plan-doomed-from">was doomed from the jump</a>, but assuming it&#39;s dead, it sure was fun while it lasted.
It also had implications for a variety of exchange-traded funds, reminding investors that simply because a few ETFs purport to do the same, they aren&#39;t always identical twins.
The Wedbush ETFMG Video Game Tech ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gamr#NYSE">GAMR</a>), the original video game ETF, is a prime example of this trend. At one point last week, GameStop accounted for as much as 27% of GAMR&#39;s weight. Following GameStop&#39;s plunge, which dragged GAMR down 10.61%, the ETF has <a href="https://etfmg.com/funds/gamr/">a 19.45% allocation</a> to the retailer.
GAMR tracks the EEFund Video Game Tech Index, which &ldquo;is designed to reflect the performance of companies involved in the video game technology industry, including game developers, console and chip manufacturers and game retailers,&rdquo; according to ETFMG.
Why It&#39;s Important: Differences between similar-sounding ETFs are crucial. For example, the Roundhill BITKRAFT Esports &amp; Digital Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nerd#NYSE">NERD</a>), often highlighted as the most pure ETF in this space, rose 1.58% Tuesday. Guess what? NERD <a href="https://www.roundhillinvestments.com/etf/nerd/full-holdings">has no GameStop exposure</a>.
A similar situation played out Tuesday with the VanEck Vectors Video Gaming and eSports ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/espo#NASDAQ">ESPO</a>). That ETF gained 1.38%, aided by its status as a non-GameStop ETF. The Global X Video Games &amp; Esports ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hero#NASDAQ">HERO</a>) added 1.47%. Not surprisingly, HERO has no GameStop exposure, either.
What&#39;s Next: Another interesting point about the video game ETFs is that since the start of the GameStop/WallStreetBets commotions, investors pulled money from GAMR while adding capital to ESPO, HERO and NERD.
That&#39;s a superficial factoid, but it might be indicative of investors realizing differences between gaming ETFs are meaningful and that&#39;s important at a time when video game publisher earnings are trickling in. As Microsoft (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) and Electronic Arts (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ea#NASDAQ">EA</a>) prove, the industry is growing and on solid footing.
Bottom line: If GameStop rallies anew, GAMR is a nice option for synthetic exposure to what&#39;s now a notoriously volatile stock.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Long Ideas

Sector ETFs

For Some Video Game ETFs, It Was Fun While It Lasted With GameStop

BRKS

DCRBU

DWLD

EBIZ

FORM

GLIBA

JSML

KBLMR

LBRDA

LBRDK

MAACU

MELI

MORN

POOL

First Trust NASDAQ-100 Equal Weighted Index Fund

QQEW

SITE

SMMCW

STNE

Tekkorp Digital Acquisition Corp Units (1 Ord Share Class A & 1/2 War)

TEKKU

Stocks Trading Near 52-Week Highs On Friday, Nov. 6, 2020: SID, SE, TEKKU, PFXI, HERO, MORN, RMD, ROL, FSV, TMO, KBLMR, STNE, DWLD, BFT, JSML, BRKS, FORM, EBIZ, MAACU, QQEW, LBRDK, POOL, LBRDA, GLIBA, CHN, DCRBU, SMMCW, MELI, SITE

Full List:&nbsp;EYE, FIVN, BLDR, HUBS, GO, SNPS, NTLA, PCTY, TTEC, REZI, SI, GRBK, CARR, DRIV, IPHI, MELI, CDNS, TA, TMO, GNOM, HERO, DNKN, GNRC, CAF, QCLN, SFTTW, DVA, CROX, MCHI, MGNI, IIPR, BEEM, LRCX, SAIL, RACE, HOLX, TER, SNE, ADI, FTCH, SMH, SOXX, LSCC, MTCH, GOOGL, XLNX, MXIM, QQQJ, HEAR, KLAC, GOOG, U, ORBC, OIIM, GDS, SE, DHR, GMAB, BEKE, CRSR, NIU, UPWK, QCOM, ALTM, PDD, NIO, XPEV, JD

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CARR

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DNKN

DRIV

FIVN

FTCH

GMAB

GNOM

GNRC

GOOG

GOOGL

GRBK

HEAR

HOLX

HUBS

IIPR

IPHI

KLAC

LRCX

LSCC

MCHI

MGNI

MTCH

MXIM

NTLA

OIIM

ORBC

PCTY

Citigourp Global Markets 2% Protected Notes Linked To The Djia

First Trust NASDAQ Clean Edge Green Energy Index Fund

QCLN

QCOM

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RACE

REZI

SAIL

SFTTW

SNPS

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

TTEC

UPWK

XLNX

XPEV

68 Stocks Trading Near 52-Week Highs Just After Open On Thursday, Nov. 5, 2020:

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Despite the uncertainty playing out in the financial world, Canadian ETF provider Evolve has garnered a good deal of investor attention and capital through 2020, recently achieving the major milestone of surpassing $1B assets under management (AUM).
Fund flow into the company&rsquo;s stable of high-tech and emerging industry ETFs has thrived through the global pandemic as investors have looked to technology to mitigate or solve the problems posed by the ongoing health crisis. Investment into Evolve&rsquo;s funds has been so enthusiastic that, just this summer, the company surpassed the $1B AUM mark after less than three years of its first ETF listing.
Benzinga had the opportunity to speak with Evolve ETFs President and CEO Raj Lala about the AUM milestone as well as the provider&rsquo;s E-Gaming Index ETF (TSX:HERO), which, after one year since its launch as Canada&rsquo;s first gaming and e-sports ETF, has gained roughly 50% in net asset value and is among the provider&rsquo;s top-performing funds.
<a href="https://www.benzinga.com/files/u105576/image1_17.png" onclick="imce.send('image1_17.png'); return false;" title=""><img alt="image1_17.png" src="https://www.benzinga.com/files/u105576/image1_17.png" /></a>
<table cellspacing="0">
<tbody>
<tr>
<td colspan="2" style="height:15pt; vertical-align:bottom">
Total Return Performance (%)
</td>
<td style="height:15pt; vertical-align:bottom">&nbsp;</td>
<td style="height:15pt; vertical-align:bottom">&nbsp;</td>
<td style="height:15pt; vertical-align:bottom">&nbsp;</td>
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TICKER
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NAME
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YTD
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1 YR
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<td style="height:15pt; vertical-align:bottom">
SINCE INCEPTION**
</td>
</tr>
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<td style="height:15pt; vertical-align:bottom">
HERO
</td>
<td style="height:15pt; vertical-align:bottom">
Evolve E-Gaming Index ETF
</td>
<td style="height:15pt; vertical-align:bottom">
38.46
</td>
<td style="height:15pt; vertical-align:bottom">
49.73
</td>
<td style="height:15pt; vertical-align:bottom">
47.31
</td>
</tr>
<tr>
<td colspan="2" style="height:15pt; vertical-align:bottom">
Source: Bloomberg, as at July 31, 2020.
** Since Inception on June 17, 2019.
</td>
<td style="height:15pt; vertical-align:bottom">&nbsp;</td>
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Said Lala, &ldquo;We want to make sure that the themes we&rsquo;re bringing to investors &mdash; the underlying portfolio that is usually comprised of the index &mdash; is not going to be overlapping or duplicative to what investors already have in their portfolio.&rdquo;
<h3>How Evolve Managed $1 Billion</h3>
According to Lala, Evolve&rsquo;s path to $1B AUM is the result of creating ETFs that are the product of a very deliberate process. The process starts by recognizing new and emerging themes within the global economy and understanding whether that theme has the potential to develop and thrive beyond the immediate hype surrounding it.
This includes looking at the major players within the space and the investments being made in that segment, but it also involves looking at the larger economic or cyclical factors that could impact the industry.
&ldquo;One of the first things we consider when we look at a particular sector or theme or strategy is to confirm there&rsquo;s a solid long-term investment thesis attached to them,&rdquo; said Lala. &ldquo;The next thing we ask is how would a sector like this, a theme like this, perform in different market environments or different economic environments?&rdquo;
<a href="https://evolveetfs.com/webinar-hero-august-19-2020/" style="text-decoration:none;">Insert Coin: Click Here to Register for Evolve&rsquo;s Webinar on eGaming Investing</a>
However, what tends to set Evolve&rsquo;s funds apart from other index-based funds is the attention paid to how the individual components work, both within the fund as well as within an investor&rsquo;s portfolio.
&ldquo;One of the valuable components of the process is how will this fit into a client portfolio,&rdquo; Lala explained. &ldquo;What is the function of this sector? Is it there to be just a pure alpha generator? Is it there to provide some diversification? We need to go through that process to fully understand and appreciate how this fits into a client portfolio.&rdquo;
The most unique factor in this consideration is what companies truly represent an industry versus those that simply pad out a fund&rsquo;s top holdings. It was here that Lala dove into his view of the HERO ETF and what sets it apart from other gaming and esports funds.
<h2>100% Dedicated To Gaming</h2>
Lala did not mince words in his appraisal of what distinguishes HERO from other funds in the industry. Like Evolve&rsquo;s other ETFs, HERO is heavily focused on delivering its promise of providing pure exposure to the gaming industry without any fluff or overlap.
&ldquo;That&rsquo;s a really big issue in the ETF world today where you have these funds where when you actually drill down into it it&rsquo;s not really that representative of what you&rsquo;re getting within,&rdquo; said Lala. &ldquo;For example, we know Apple is involved in gaming with Apple arcade, as is Amazon with Twitch and Google with Stadia. Are those going to be three of our top five holdings? That&rsquo;s not really an e-gaming ETF, is it? It&rsquo;s a big tech ETF warehouse.&rdquo;
This view is backed up by looking at HERO&rsquo;s top holdings, which is stacked with the videogame industry&rsquo;s top developers, including the likes of Activision Blizzard, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/atvi#NASDAQ">ATVI</a>), Take-Two Interactive Software, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ttwo#NASDAQ">TTWO</a>) and Nintendo Co., Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ntdoy#OTC">NTDOY</a>).
<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" frameborder="0" height="360" src="https://www.youtube.com/embed/lo1ZUSuby_k" width="640"></iframe>
And while this excludes the aforementioned tech giants like Apple, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and Alphabet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) or semiconductor giants like Nvidia Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), it makes HERO a much more targeted and dedicated fund for those looking for pure exposure to gaming without any overlap or excess, something Lala says Evolve is committed to providing investors.
<h2>A Powered Up Industry</h2>
Lala&rsquo;s focus on HERO during the interview was a consequence of the video game industry&rsquo;s history of strong performance, a trend that has only accelerated during the pandemic. The result has been a rash of new gaming ETFs and heightened investor interest in the industry.
&ldquo;I think many people are unaware of is how big of an industry it actually is,&rdquo; Lala said. &ldquo;The video game industry is nearly triple the size of the film and music industry combined so people are really starting to take notice of it.&rdquo;
Of course, it&rsquo;s difficult to overlook the primary catalyst affecting the global economy writ large. From Lala&rsquo;s perspective, the constraints of the global pandemic have further opened the door to increased videogame adoption to the mainstream, both in terms of hardcore and casual players, but also streaming and esports viewership.
<a href="https://evolveetfs.com/webinar-hero-august-19-2020/" style="text-decoration:none;">CONTINUE? Learn About the Biggest Investment Trends in eSports and Online Gaming</a>
Perhaps the biggest driver promising to help the gaming industry retain its current size is the value proposition gaming represents. With roughly <a href="https://www.marketingcharts.com/cross-media-and-traditional/videogames-traditional-and-cross-channel-82362" style="text-decoration:none;">33% of households in the U.S. owning a gaming console</a>, and more than <a href="https://www.pewresearch.org/internet/fact-sheet/mobile/" style="text-decoration:none;">80% of individuals owning a smartphone</a>, access to games has never been easier and engagement has never been higher.
&ldquo;When we think of a recessionary environment we often think of investing in things like gold or maybe even healthcare,&rdquo; Lala explained. &ldquo;But we don&rsquo;t think of sectors like e-gaming as one of those somewhat recession-proof sectors. But when you piece it all out it makes sense.&rdquo;
This trend has borne out in the recent recessionary environment. The latest readings from the Commerce Department have shown Americans are <a href="https://www.bea.gov/news/2020/gross-domestic-product-2nd-quarter-2020-advance-estimate-and-annual-update" style="text-decoration:none;">spending less and saving more</a> as the pandemic worsens and financial insecurities mount. Nevertheless, Nintendo Co., Ltd. recently released earnings for the April-June period that showed <a href="https://www.nintendo.co.jp/ir/pdf/2020/200806e.pdf" style="text-decoration:none;">80% year-over-year sales growth in the Americas</a> while the most recent quarterly report from Sony Corporation (OTC: <a class="ticker" href="https://www.benzinga.com/stock/snejf#OTC">SNEJF</a>) was almost solely supported by <a href="https://finance.yahoo.com/news/sonys-sne-q1-earnings-beat-170905939.html" style="text-decoration:none;">growth in the tech company&rsquo;s gaming segment</a>.
<h2>Bonus Level</h2>
Looking ahead, Lala sees continued momentum supporting the videogame industry. And while continued social distancing measures and a slate of new consoles from Sony Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sne#NYSE">SNE</a>) and Microsoft Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) will no doubt keep interest in gaming high going through the holidays, Lala believes the biggest growth is in the casual market and on mobile devices.
&ldquo;For the hardcore gamers, console sales have been booming during work from home, there was a waiting list to get the Switch and Xboxes and PS4s, the PS5 is coming out this fall,&rdquo; Lala said. &ldquo;But at the end of the day, if you&rsquo;re going to have true success in game manufacturing, you have to modify your game to also provide a mobile experience. Call of Duty has gone mobile and their sales have increased partially because of it.&rdquo;
This view is echoed in the distribution for HERO, which includes shares of mobile developers like Zynga Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/znga#NASDAQ">ZNGA</a>) and South Korea&rsquo;s NEXON Co., Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/nexof#OTC">NEXOF</a>). Lala sees developers like this, as well as larger developers like Activision Blizzard making in-roads into mobile, expanding the mobile segment to as much as 60% of the total video game market.
And, as far as Apple and Google&rsquo;s attempts to broach the gaming landscape through subscription services like Apple Arcade and Google Stadia, Lala does see the potential. However, he also contends that these platforms have missed the mark due to the lack of focus on high-quality content. He instead points to subscription services from companies that have solid content libraries that can drive engagement, like Electronic Arts Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ea#NASDAQ">EA</a>) and Microsoft&rsquo;s recently announced xCloud service.
With interest in video games reaching a fever pitch in the depths of the pandemic, e-sports leagues garnering greater attention and ad-revenue, and entire generations being raised with video games, the industry is finding ever-greater presence in the global mainstream.
&ldquo;I do think that you&rsquo;re going to have greater adoption and greater viewership as it relates to gaming in general. It&rsquo;s not just a COVID thing, this has been coming for a while.&rdquo;
<a href="http://evolveetfs.com/product/hero/">Interested in learning more about the Evolve E-Gaming Index ETF? Click here!</a>
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Interview

AAPL

ATVI

NEXOF

NTDOY

SNEJF

ZNGA

New High Score: Evolve ETFs CEO On Hitting $1B AUM And The Surging Video Games Sector

Education is big business and a thematic investment proposition and where those traits reside, an exchange-traded fund usually isn&#39;t far behind.
What Happened?&nbsp;That ETF arrived Tuesday in the form of the Global X Education ETF (NASDAQ:EDUT). EDUT, which tracks the Indxx Global Education Thematic Index, is the third new ETF launched by Global X in less than a month.
The new ETF&#39;s 34 holdings include companies involved in &ldquo;online learning and publishing educational content, as well as those involved in early childhood education, higher education, and professional education,&rdquo; <a href="https://www.globalxetfs.com/funds/edut/">according to the issuer</a>.
Why It&#39;s Important:&nbsp;Indeed, EDUT is yet another thematic ETF, but the theme it taps into is credible and highly important. That being the evolving workforce demands students and workers to constantly update their skills and credentials.
&ldquo;The skillsets employers demand is evolving quickly and will likely continue to &ndash; the Institute for the Future estimates that 85% of the jobs today&rsquo;s students will have in 2030 don&rsquo;t exist yet,&rdquo; said Global X <a href="https://www.globalxetfs.com/introducing-the-global-x-education-etf-edut/">in a research note</a>. &ldquo;The surging value of education in the workforce is driving strong growth across the global industry, with revenues expected to rise from $6T in 2020 to $10T in 2030.&rdquo;
EDUT features exposure to six industries. While higher and professional education is the largest of those at a weight of 25.21%, EDUT shows it&#39;s built <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/06/16401760/got-the-work-from-home-blues-a-new-etf-could-be-the-cure">for the current environment</a> of increased online education with a combined weight of more than 46% to online learning companies and video communications providers.
&ldquo;According to an EY-Parthenon survey conducted at the height of the pandemic, 70% of students reported using third-party technology solutions to continue their education at home,&rdquo; notes Global X. &ldquo;While we believe social distancing will remain a consistent theme even after the pandemic runs its course, these technologies are appealing for reasons beyond idiosyncratic events.&rdquo;
What&#39;s Next?&nbsp;Time will tell if EDUT adds to the expansive list of successful Global X thematic ETFs, but it&#39;s clear the way education is delivered is shifting. The coronavirus pandemic is simply moving that transition
along. Additionally, the rapidly evolving labor market demands workers have fresh skills.
&ldquo;The global labor market is becoming more competitive as automation technologies like robotics and artificial intelligence and larger pools of candidates to hire from shape it as skills-centric,&rdquo; according to Global X. &ldquo;At the same time, governments and individuals strive to maintain high employment and improve the quality of life. Investments in human capital through education and training could prove critical in balancing these dynamics. Investors can play a part in this.&rdquo;
EDUT charges 0.50% per year, or $50 on a $10,000 investment.

Education

Get Smart With A New Education ETF

Popular esports and lifestyle brand 100 Thieves is hosting three Gamers for Equality events across different competitive titles.
In partnership with
Square Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sq#NYSE">SQ</a>)-owned CashApp, the organization is kicking off the event with a &quot;League of Legends&quot; tournament starting July 1.
The team initially hoped to kick off a weekly tournament series through &quot;Call of Duty: Warzone&quot; on June 18, but a <a href="https://www.benzinga.com/news/20/06/16283231/activision-denies-100-thieves-request-to-use-call-of-duty-warzone-in-charity-tournament">dispute</a> between 100 Thieves and Activision Blizzard (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/atvi#NASDAQ">ATVI</a>) forced the series to be&nbsp;postponed.
Matt &quot;Nadeshot&quot; Haag, the CEO of 100 Thieves, announced that the organization would find a different way to hold the event in different titles.
Now, the Gamers for Equality series will donate $100,000 from three different events in titles &quot;League of Legends,&quot; &quot;VALORANT&quot; and &quot;Fortnite.&quot;
<blockquote class="twitter-tweet">Announcing the <a href="https://twitter.com/CashApp?ref_src=twsrc%5Etfw">@CashApp</a> Gamers For Equality tournament series! A three-week event to donate $100,000 to support organizations furthering racial equality.
7/1 - League of Legends 
7/8 - VALORANT 
7/15 - Fortnite
More details to come! <a href="https://twitter.com/hashtag/GamersForEquality?src=hash&amp;ref_src=twsrc%5Etfw">#GamersForEquality</a> <a href="https://t.co/bN6O1kNCI0">pic.twitter.com/bN6O1kNCI0</a>
&mdash; 100 Thieves (@100Thieves) <a href="https://twitter.com/100Thieves/status/1276589852788527104?ref_src=twsrc%5Etfw">June 26, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>The series will last from July 1 to July 15, with the &quot;League of Legends&quot; tournament kicking it off. Fans can tune into the event through Amazon&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) Twitch on the 100 Thieves official channel.

Events

AMZN

100 Thieves 'Gamers For Equality' Kicks Off With 'League of Legends' Tournament

Seth &quot;Scump&quot; Abner is a veteran in &quot;Call of Duty&quot; esports, and he has been quite vocal about the state of the league and &quot;Call of Duty: Modern Warfare.&quot;
The player <a href="https://www.benzinga.com/news/20/05/16049026/seth-scump-abner-slams-call-of-duty-modern-warfare-claims-warzone-saved-it">slammed the game</a> in a video with other NRG members, labeling &quot;Modern Warfare&quot; as &quot;trash.&quot; His comments attracted a fine from Activision Blizzard (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/atvi#NASDAQ">ATVI</a>).
In an episode of &quot;<a href="https://youtu.be/-k8vc0UEIYE">The Eavesdrop Podcast</a>&quot; with Huntsmen CEO Hector &quot;H3CZ&quot; Rodriguez, Scump cautiously addressed the issue.
&quot;I&#39;m scared, I&#39;m scared now,&quot; Scump joked. &quot;They got me on a leash ... I spoke honestly, and I&#39;m not allowed to do that. We constantly [create content around MW] and sometimes it&#39;s gonna, you know, lead back to an opinion about &#39;Call of Duty,&#39; which is what we play everyday.&quot;
It was obvious he had more to say about the issue of censorship in the league, but avoided the topic.
&quot;Modern Warfare&quot; has had mixed reactions on&nbsp;the competitive side of the title. Players like Damon &quot;Karma&quot; Barlow have embraced <a href="https://www.benzinga.com/news/20/06/16180510/damon-karma-barlow-3-time-champion-retires-from-call-of-duty">retirement</a> due to the game.
Scump broached the idea of retirement and becoming a full-time content creator. He revealed that he was contracted through the next &quot;Call of Duty&quot; title, but after that, it&#39;s his choice.
&quot;Realistically, I think, I don&#39;t know. My max would probably be like four years, my max like left,&quot; he said.
&quot;It&#39;s hard to tell, you can&#39;t put a pin in it and be like this will be my final year.&quot; Scump said he understands that he has options, and added that his decision could depend on other factors, including the state of &quot;Call of Duty&quot; and whether another game manages to catch his eye.

Huntsmen's Seth 'Scump' Abner Talks Retirement, Censorship In 'Call Of Duty' League

&quot;Valorant,&quot; the tactical shooter from TENCENT HOLDING/ADR&nbsp;(OTCMKTS: TCEHY)-owned Riot Games, is getting a lot of attention &mdash; and numerous esports organizations have already started investing in talented rosters.
When teams began scouting top prospects during the game&#39;s closed beta, many wondered if it was a careless action. Rumors of players wanting massive salaries, some reaching up to $20,000 per month began to circulate.
Top talent from other titles like &quot;Counter-Strike&quot; and Activision Blizzard&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/atvi#NASDAQ">ATVI</a>) &quot;Overwatch&quot; began retiring to pursue the new first-person shooter&nbsp;game.
Since the game&#39;s release, more esports organizations are jumping into the competition. G2 Esports is just one team moving into the scene.
G2 Esports Targets &#39;Valorant&#39;: In an <a href="https://www.forbes.com/sites/mikestubbs/2020/06/18/g2-esports-ceo-reveals-why-he-is-investing-heavily-in-valorant/#c9090a01e128">interview with Forbes</a>, G2 Esports CEO Carlos &quot;Ocelote&quot; Rodriguez revealed why the organization is investing &quot;heavily&quot; in &quot;Valorant,&quot; and spoke to whether the early stages of the game add any major risks.
&quot;&#39;Valorant&#39; is a top title and it merges some of the things that make games appealing to play and watch, just like &#39;League of Legends&#39; accomplished. G2 Esports is meant to lay the foundation of what esports is going to become in the future,&quot; Rodriguez told Forbes.
G2 Esports&#39; &#39;Valorant&#39; Launch: &nbsp;Rodriguez described the &quot;Valorant&quot; effort as a high-risk, high-reward one.&nbsp;
Earlier this week, G2 announced its jump into the title with the signing of former &quot;Counter-Strike: Global Offensive&quot; player Oscar &quot;Mixwell&quot; Ca&ntilde;ellas Colocho.
The organization is&nbsp;hosting the G2 Esports VALORANT Invitational this weekend in partnership with Red Bull. This is the first event in the game&#39;s Ignition Series.
The tournament will feature a $16,819 prize pool.
What&#39;s Next: The Ignition Series is an important initiative.
With Riot involving other organizations in the tournament series, it&#39;s obvious the company plans to use these events as a map to help plan out what the future of &quot;Valorant&quot; competition will look like.
Photo courtesy of Riot Games.&nbsp;

Sports

G2 Esports Makes 'High Risk, High Reward' Investment In 'Valorant'

Activision Blizzard (NASDAQ: <a href="https://www.benzinga.com/stock/atvi/">ATVI</a>) exceeded expectations with its first-quarter report Tuesday.
The company&#39;s financial boost stems from the releases of AAA titles like &quot;Call of Duty: Modern Warfare&quot; and its free attachment &quot;Call of Duty: Warzone,&quot; which has reached over 60 million players since its launch&nbsp;March 10.
&quot;Modern Warfare&quot; has sold more units and has more active players than any prior &quot;Call of Duty&quot; title. In addition, &quot;Call of Duty Mobile&quot; has consistently released content since its October launch. Stay-at-home orders due to the coronavirus&nbsp;have also helped lift sales, and while the pandemic&nbsp;has affected the &quot;Call of Duty&quot; League, all events have successfully been shifted to online play and production at YouTube.
The video game publisher posted adjusted sales of $1.522 billion and earnings of 58 cents per share, beating the 38-cent-per-share Street estimate.&nbsp;
&quot;I&#39;ve conducted over 100 earnings calls and none was under a backdrop of so much uncertainty for the future,&quot; said Activision CEO Bobby Kotick.&nbsp;
&quot;Our mission to connect and engage the world through epic entertainment has never been more meaningful than it is today. At a time when so many forms of social interactions and entertainment experiences have been shut down, we&#39;re providing entertainment with positive impact for hundreds of millions of people through our games.&quot;
The stock was trading 0.34% higher at $73.12 at the time of publication Thursday.
<h3>Activision Blizzard&#39;s Growth Outlook&nbsp;</h3>
<a href="https://wedbush.bluematrix.com/sellside/EmailDocViewer?encrypt=1a8bb8c0-1f6e-484c-ab4a-bdea7f9ef7f5&amp;mime=pdf&amp;co=wedbush&amp;id=replaceme@bluematrix.com&amp;source=mail">Wedbush</a> predicts steady growth at Activision due to &quot;upcoming game and platform announcements and launches; digital revenue growth; growth in esports viewership; contribution from King advertising; quarterly results; and guidance.&quot;&nbsp;
UBS said the&nbsp;company posted a&nbsp;&quot;strong across the board beat driven by [&quot;Call of Duty&quot;]&nbsp;outperformance and continued [&quot;World of Warcraft&quot;] momentum.&quot;&nbsp;
BofA Securities echoes the prediction of growth and said &quot;Activision is an Interactive entertainment industry leader with a strong title portfolio. Growth drivers are new IP &amp; margin improvement from digital revenues.&quot;
<h3>The Risks For Activision</h3>
While positive predictions are consistent across the board, a few factors could weigh down Activision&#39;s financial advancement. While the coronavirus has helped boost video game sales and user activity, it could potentially harm the industry in the future.&nbsp;
UBS noted that Activision&#39;s &quot;advertising decelerated at the end of March due to COVID-19.&quot;&nbsp;
Analysts at BofA Securities said Activision&#39;s portfolio is strong enough to help continue growth. They believe &quot;growth drivers are new IP and&nbsp;margin improvement from digital revenues. Given opportunities for new franchises and exposure to PC and mobile, we believe ATVI should trade at the upper end of its historical range of 11x-27x forward P/E multiple.&quot;
<h3>Activision Blizzard Ratings</h3>
<ul>
<li>Wedbush maintained an Outperform and adjusted&nbsp;its&nbsp;price target from $76&nbsp;to $84.</li>
<li>BofA Securities maintained a Buy rating and raised the price target from $70 to $80.&nbsp;</li>
<li>UBS maintained a Buy rating and lifted&nbsp;its price target from $66&nbsp;to $84.&nbsp;</li>
</ul>

Analyst Color

Activision Blizzard Analysts Lift Price Targets After Q1 Report, Say 'Call Of Duty,' Coronavirus Driving Results

Electronic Arts (NASDAQ: <a href="https://www.benzinga.com/stock/ea/">EA</a>) reported fourth-quarter earnings Tuesday&nbsp;of $1.43 per share against a 98-cent estimate and sales of $1.387 billion that beat a $1.19-billion estimate.
The <a href="https://www.benzinga.com/stock/ea">video game developer </a>guided to first-quarter net sales of $1.22 billion, net bookings of $1 billion and earnings of 93 cents per share.
Electronic Arts expects fiscal year 2021 net sales of $5.525 billion and earnings of $3.35 per share.&nbsp;
Nearly 80% of EA&#39;s revenue came from digital sales, and titles like &quot;Apex Legends&quot; have continued to&nbsp;compete against other digital free-to-play titles like Activision&#39;s&nbsp;(NASDAQ: <a href="https://www.benzinga.com/stock/atvi/">ATVI</a>)&nbsp;&quot;Call of Duty: Warzone.&quot;
In addition, EA Sports titles like &quot;FIFA&quot; and &quot;Madden&quot; are continuing to experience growth, particularly due to live services. While the coronavirus pandemic has harmed physical retail sales, there wasn&#39;t a major impact seen in the results reported this week.&nbsp;
The stock lost 3.59% Wednesday, ending the session at $115.32.&nbsp;
<h3>Can EA Compete Long-Term?</h3>
BofA Securities has taken note of EA&#39;s ability to grow, even during a&nbsp;pandemic.
The video game publisher should realize ongoing margin expansion as more revenue is derived from higher-margin digital sources, analyst <a href="https://www.tipranks.com/analysts/ryan-gee">Ryan Gee</a> said in a Wednesday note.
&quot;We expect margin expansion to continue on the MTX/digital shift, however, recent execution issues on non-sports titles (especially mobile) makes us question its longer-term competitiveness,&quot; the analyst said.&nbsp;
Needham detailed EA&#39;s growth potential, stating that the company&#39;s defensive placement due to its online presence could help maintain resiliency.
EA&#39;s &quot;physical sales represented only 20% of EA&#39;s 2019 revenue, down from 84% during the 2009 recession, so store closures have had a limited negative impact,&quot; analyst <a href="https://www.tipranks.com/analysts/laura-martin">Laura Martin</a> said in a Wednesday note.&nbsp;
EA&#39;s ability to fill the industry with sports entertainment has helped the company tremendously, she said.&nbsp;
&quot;Although it is unclear exactly when live sports like the NFL or FIFA will return to work, EA proved in the March quarter that it can drive higher engagement with its sports games through new content and new features for fans starved for the social communities and conversations built around sports content.&quot;&nbsp;
EA is set to be a key beneficiary of the stay-at-home trend, Wedbush analyst <a href="https://www.tipranks.com/analysts/michael-pachter">Michael Pachter</a> said in a Wednesday note.&nbsp;
&quot;The company has begun to restore investor confidence in our view, and we think investors should once again give management the benefit of the doubt about its three-year forward release schedule.&quot;
<h3>EA&#39;s Growth Could Depend on Larger Titles</h3>
While EA has maintained a strong foothold with its online presence, growth may dwindle until larger AAA titles are released.&nbsp;
Wedbush predicts modest growth in fiscal year 2021, but said it&nbsp;&quot;will&nbsp;grow dramatically in FY:22 from the &#39;Battlefield&#39; launch and from a ramp in &#39;Apex Legends&#39; on mobile, and will grow even more dramatically in FY:23 from launches of an additional &#39;Star Wars&#39; title, the &#39;Titanfall&#39; brand extension from Respawn, the expansion of &#39;Apex Legends&#39; into China, and games from BioWare and Motive.&quot;
Benchmark&#39;s <a href="https://www.tipranks.com/analysts/mike-hickey">Mike Hickey</a> said EA issued a &quot;monster&quot; first-quarter outlook and a disappointing 2021 outlook.&nbsp;
&quot;We suspect EA is concerned over potential game delays and how sports games and related live service games will perform with the current disruption to professional sports where the IP is synched,&quot; the analyst said.&nbsp;
<h3>Electronic Arts Ratings</h3>
<ul>
<li>Wedbush has an Outperform rating and raised its&nbsp;price target from $135&nbsp;to $145.</li>
<li>Needham maintained&nbsp;a Buy rating and raised its&nbsp;price target from $120 to $135.</li>
<li>Benchmark reiterated a Buy rating with a $143 price target.&nbsp;</li>
<li>BofA Securities reiterated a Neutral rating and raised the price objective from $116 to $122.&nbsp;</li>
<li>&nbsp;</li>
</ul>

Electronic Arts Analysts See Stay-At-Home Strength, Possible Game Delays After Q4 Report

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