Gaming Companies Benefiting from Growing iPhone Sales
By:NewsyStocks   Thursday, July 21, 2021 10:05 AM

The mobile app development market has seen some explosive growth in recent years. Advancements in technology and smartphones have allowed users to do more with their phones. A recent study conducted by a German research company found that the world's mobile application market is expected to reach $100 billion by 2015. The largest app market is available for Apple Inc.'s (Nasdaq: AAPL) users. On Wednesday, shares of Apple climbed after its quarterly earnings results exceeded expectations, with sales of iPhone and iPad exceeding analysts' estimates. So, we decided to do some research on companies listed on the Nasdaq stock exchange that make applications for the world's largest selling mobile operating system.

1.)    Activision Blizzard Inc. (Nasdaq: ATVI) has a market capitalization of 13.65 billion and quarterly revenue growth of 10.80 percent. The company is engaged in online, personal computer, console, handheld, and mobile game publishing. It is one of the major gaming app makers for iPhones and iPads. The stock is trading at a P/E ratio of 27.62, well below the industry average of 38.20. The 5-year expected growth is 1.17, again higher than the industry's average of 1.06. The stock has a dividend yield of 1.41 percent and its return for the last year has been 4.1 percent. The company has total cash of $3.36 billion, with no debt on its balance sheet. Analysts have given the stock a buy rating with a $14.50 price target for the next year. ATVI is currently trading lower 0.04 percent to $11.89 a share.

2.)    Electronic Arts Inc. (Nasdaq: ERTS) is also a gaming app developer for Apple's mobile operating systems. It develops, markets, publishes and distributes game software and content for mobile phones. The company has a total market capitalization of $7.98 billion and has a quarterly revenue growth of 11.30 percent. The company has not posted profits in recent quarters, hence it does not have a P/E ratio. The company has a 56.6 percent 1-year return on its stock. Five-year growth is expected to be 1.68, again higher than the industry's average of 1.06. The company has total cash of $2.24 billion, with no debt on its balance sheet. Analysts have given the stock a hold rating with a $24.32 price target for the next year. The stock is currently trading lower 0.25 percent to $24.04 on Wednesday.

3.)    Mattel Inc. (Nasdaq: MAT) creates apps for the iPhones and iPads. Mattel has a total market capitalization of $9.28 billion and quarterly revenue growth of 8.20 percent. The stock is trading at a P/E ratio of 14.43, well below the industry's average of 38.20. The 5-year expected growth is 1.29, and Mattel has has a dividend yield of 3.34 percent. The last 1-year returns have been 26.3 percent for the company's stock. It has total cash of $1.05 billion, with total debt of $1.20 billion on its balance sheet. Zacks has given the stock a buy rating with a $31.85 price target for the next year. MAT is currently trading lower by 1.15 percent to $26.71 a share.


 

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