How to make money on investments if you love games and gadgets
Miscellaneous / / November 25, 2021
What Happens to Stocks in the Game Industry and Technology
The market is in constant flux. For example, Electronic Arts' share price has been volatile all year and hesitated ranging from $ 124 to nearly $ 150. This opened up many opportunities for all sorts of deals. The movement up or down depends on what is happening: for example, stocks usually go up by leaps and bounds when a company presents something cool and revolutionary.
You can make money not only on breakouts, but also on temporary difficulties. For example, in early August 2021, after the publication of the financial report of the stock of the developer of online games Zynga collapsed up 20% from $ 9.9. But already at the end of the month they won back a significant part of the positions. Thus, during this period it was possible to earn more than 12%. And after the massive stock market crash, Activision Blizzard shares in March 2020 fell up to $ 52. But in February 2021, they rose to $ 103, an increase of an impressive 98% in less than a year.
The stocks of companies are affected by the growth of the cryptocurrency market. When miners began to massively buy video cards, the securities of the market leader, NVIDIA, went up. On November 3, the rate was at around $ 266, the next day it added 12%. The excitement around the cryptocurrency is growing, so top-end video cards are still difficult to find on sale even at a speculative price, and the manufacturer's shares continue to rise in price.
The media presence and charisma of a company leader is an important factor on the stock exchange. Tesla's stock price fuels every new appearance of Elon Musk in public space. His ambition led many to believe in the company and its products - and to make the Tesla founder the richest man on the planet. For the year - from November 2020 to November 2021 - the company's shares have risen in price three times, up to $ 1,223. True when Musk decided entrusting the fate of 10% of the company's shares to Internet users, the rate went down. But it is possible that this is a reason to buy now and make money on subsequent growth.
Ambitious plans could drive up the value of the stock. Let's say that AMD shares, the main competitor to NVIDIA, are on the rise. A large manufacturer of processors and video cards held a cool presentation of new chips and accelerators, and also spoke about the deal with Meta (formerly Facebook): The company wants to build its own cloud platform and compete with Microsoft Azure, Amazon Web Services and Google Cloud. For a few days, from 5 to 8 November, the stock price increased immediately by 10%, up to $ 150. In total, from May to November 2021, securities rose in price by 108%.
But NVIDIA is not lagging behind. Company trains a monster video card with more than 30 thousand cores and an energy consumption of 1 kW, and its capitalization for the first time exceeded $ 800 billion - gained 50 billion in two weeks. The company's stock price is stable is growing from the beginning of October, and this opens up interesting prospects for investors.
Knowledge can be monetized in different ways: writing software code, testing finished products, creating graphics, calculating mathematical models. If you do not work in the IT or gaming industry, but love games and gadgets, you can try your hand at investing. The investment company helps to master the basics of working on the stock exchange without risk.FINAM».
Here you can open a brokerage account or demo account and try your hand at the stock market. For example, with the service FreeTrade an account is opened online, and you can trade from a smartphone on the Moscow Exchange without commissions. There is no minimum threshold - you can start with any amount. To increase the efficiency of your investments, you can also open an individual investment account.
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How to make money by investing in games
Follow new releases, reports and industry news
If a company launches a successful product or shows optimistic performance in its financial statements, the share price often goes up. But seasoned investors don't always wait for official announcements. They are usually guided by the forecasts of experts, which show the vector. If it is clear from a product release that new developments will bring a lot of money to the company, market analysts can predict profit and potential figures in future financial statements.
Failures and scandals can bring down stock prices. The change in management is also causing shareholders to worry and plummet their quotes. The fall usually occurs after the additional issue of new shares, because then each security provides a smaller share in the business. If in the quarterly report there are continuous falls and minuses, stocks also go to a steep peak.
Fresh example: Electronic Arts shares after the publication of the financial report for the third quarter have grown by 4.1%. But since the new Battlefield 2042 released on November 19, received predominantly negative reviews, the stock price went down sharply: in just a week from November 16, they fell by 12%.
But if the company is strong, it will get out of this hole. So if you understand that the problems are not structural, you can buy stocks “at the bottom”. And then wait for growth, sell at the maximum and get a good profit.
Get insights from the community
Networking - informal communication at exhibitions, conferences and other events - also helps investors earn money. Here, companies make important announcements, but the most interesting are discussed on the sidelines and at parties.
Let's say the cool technologies and gadgets that shape the future of the industry are presented at CES, MWC and IFA. And you can learn about the secrets of the gaming industry at Gamescom, E3, GDC and other major events, including online. And if you can't get there, you can monitor information on hashtags on Twitter, follow the news on Telegram and on the branches of specialized forums.
For example, on November 18, several publications at once reportedThat Nike Is Going To Build A Metaverse Inside A Gaming Platform Roblox and that the companies entered into a partnership agreement. But the game community learned about this earlier, so Roblox shares jumped in price on November 8 - by 42% per day.
Information is everywhere: even the tone of comments under a video game announcement can predict the rise or fall of a developer's stock. If you have been in this environment for a long time, you can catch a wave of mass sentiment and decide which stocks are worth buying now and which are the time to sell.
See reviews by influencers and follow insiders
These people often know more than fans of games and gadgets. Rumors from influencers can push quotes up or make them go down.
For example, when insiders at the end of August 2021 reportedthat the iPhone 13 may have satellite communications even in the absence of a cellular network (a unique and necessary feature for emergencies), Apple shares jumped 3%. And when there were rumors that the Chinese IT giant Weibo goes away from the stock exchange, the cost of securities increased by almost 50%.
Of course, insider guesses are not always justified - but they can have an impact on stocks. In the case of Apple and Weibo, the rumors were not confirmed, but this did not stop many traders from making money. But here it is important to be able to distinguish expert opinion from hidden advertising and manipulation.
Consult with industry experts
Professional traders have already achieved success in investing. They often become mentors for beginners: they give advice, teach them to understand the agenda and make predictions.
For example, even before the publication of the financial report NVIDIA analysts recommended buy shares of this company: they expected revenue growth on the background of new sales of chips and video cards for gaming and mining. Indeed, from 17 to 19 November, after the report was made public, the company's shares rose in price by 13%.
The only difficulty is that in trading there are no unambiguous criteria for expertise - as well as guarantees that this or that advice will work. An economics professor with 30 years of experience can come up with ideal investment models. Which then will not be justified in practice, because the CEO of the company will fall into a reputation scandal. And an experienced practitioner who has made a lot of money on the stock exchange may not take into account the new round of the world economy and suggest a failed strategy.
A combination of theory and practice can be helpful. If a person understands the laws of the stock market and at the same time earns on the shares of IT companies, he will be able to formulate viable hypotheses.
However, mistakes happen to everyone, so it makes sense to compare the opinions of several experts before investing a large amount. However, the final decision is still yours - industry experts can only direct you in the right direction and, possibly, save you from mistakes of a beginner.
Investments are the path to income not only here and now, but also in the long term. The realm of gaming and digital innovation offers many opportunities for financial growth. It is convenient to start your investment journey on the website Finam.ru or in the smartphone app FinamTrade. And in the channel Finam alert you can always find the latest stock news.
It contains a lot of information for shareholders: free webinars, courses, master classes from traders. You can quickly open a brokerage account, and then - try different strategies, find out the news of the exchange and look for great deals. You can invest from one account on the Moscow, St. Petersburg, London, Chicago and other exchanges.
Invest in technology