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Daily Mail
4 days ago
- Business
- Daily Mail
Nintendo Switch 2 launches today - should you invest in the world's leading video game brands?
Gaming fans queued up outside tech stores worldwide on Thursday morning, in a bid to get their hands on the latest big launch in the gaming world. The Nintendo Switch 2 is the successor to the original Switch - the third best selling games console in history, and its launch is the first of a major console since 2020. Nintendo's original Switch console has sold 152million units. The firm is no doubt hoping its new offering can surpass this original figure. The gaming industry is bigger than ever before and is expected to reach $236.9billion in 2025, according to Midia Research. By 2031, the sector could be worth $280.1billion as gaming firms continue to grow. Nintendo has seen its share price rise by 32 per cent in the past year. Over the past five years, the firm is up 151 per cent. This growth is largely reflected across the board, according to figures from Etoro, with gaming stocks far outpacing the US' S&P 500 index. A gaming stocks basket compiled by Etoro show the eight leading gaming firms have grown at four times the rate of the S&P 500, up 46 per cent over the past year compared with 12 per cent for the index. Over the past five years, these gaming stocks have risen 141 per cent, compared to 101 per cent for the S&P 500. Over the same period, the FTSE 100 and Nasdaq increased by five per cent and 13 per cent respectively. Lale Akoner, global market analyst at Etoro, said: 'Gaming stocks' outsized returns in 2025 aren't just a function of cyclical tailwinds from blockbuster launches like GTA VI or the upcoming Switch 2. 'What we're witnessing is a structural revaluation of the sector. The shift to digital distribution and live‑service models has turned what used to be hit‑driven publishers into recurring‑revenue machines.' Akoner added that an increase in recurring revenue models have helped to stabilise growth and is 'enabling publishers to generate predictable cash flows while reducing dependence on hit releases.' On top of this, he says, gaming continues to become more mainstream, 'with smartphone penetration, 5G connectivity, and the rise of online gaming making games more accessible and social.' How have the leading gaming brands performed? Brand Returns 1 year Returns 3 years Returns 5 years Nintendo 32% 97% 151% Sony 42% 59% 171% Capcom 52% 132% 338% Electronic Arts 17% 16% 26% Take-Two 57% 105% 69% Roblox 151% 158% 17% Ubisoft -52% -78% -85% Konami 69% 116% 438% Source: Etoro Etoro's basket is made up of Nintendo, Sony, Capcom, Electronic Arts, Take-Two Interactive, Roblox, Ubisoft and Konami. While Call of Duty maker Ubisoft has fallen some 85 per cent over the past five years, and 52 per cent in the past year, this downturn is massively outweighed by the gains seen by other firms. Japanese firm Konami, which produces the Metal Gear titles alongside Pro Evolution Soccer, has surged some 438 per cent over the past five years, including growth of 69 per cent in the past year. Meanwhile, fellow Japanese producer Capcom, know for Street Fighter and Resident Evil, has risen 338 per cent in the past five years and 52 per cent in the past 12 months. Akoner said: 'The standout performers, such as Capcom and Konami, have surged by pairing monetisation maturity with strategic global expansion and operational discipline. 'Capcom, for example, now derives 70 per cent of its revenue from legacy titles, a reflection of how back-catalogue monetization and digital distribution (78% digital share) have buffered the company from new-release volatility. 'Unlike some US counterparts, these firms avoided over-hiring and aggressive cost expansion, instead optimizing for long-term, scalable growth that aligns with gaming's shift toward predictable, tech-like revenue models.' Playstation producer Sony has risen 171 per cent since 2020, while Roblox has grown 151 per cent over 12 months. The latter has more than 85million daily active users, equivalent to Germany's entire population playing the game each day. Gaming firms are also increasingly expanding beyond just video games themselves, most recently with the Minecraft movie and the second season of HBO's The Last of Us. Akoner said: 'These franchises are breaking out of the console box – from cinematic releases and mobile spin‑offs to entire theme‑park attractions – creating multiple monetisation lanes that cushion earnings volatility. 'Japanese publishers in particular have paired this monetisation maturity with cost discipline and steady hiring, avoiding the over‑expansion that is now forcing many US peers to retrench. 'As a result, investors are beginning to view gaming less as a speculative bet on the next big hit and more as a durable, long‑term growth story.'
Daily Mail
15-05-2025
- Business
- Daily Mail
Etoro shares jump 29% after its IPO in the US - is it a buy for UK investors?
Shares in investment platform Etoro opened up 34 per cent on Wednesday as it debuted on Nasdaq at midday in New York, raising over $300million. The stock settled at $67 per share at the end of trading, up 29 per cent from its Initial Public Offering value of $52, but lower than the $69.69 it opened at. Etoro shares peaked at $74.23 each, up 43 per cent form its IPO price. At the time of writing, shares in the firm are trading at $62.91, having slipped some 6.1 per cent on Thursday. Israel-based Etoro had upsized its IPO value to $52 from an expected range of between $46 and $50 apiece. The result of the IPO gives the firm a market value of around $5.4billion. The firm said it had expected to raise around $217million in its IPO. Etoro offers trading of both shares and cryptocurrencies, with the latter making the firm $12.15billion in revenue in 2024, quadrupling year on year. Last year the firm posted profit of $192million, rising from just $15million a year ago. Writing on the company's website, its co-founder and chief executive Yoni Assia said: 'As a platform built to provide access to the capital markets, becoming part of those markets as a listed company was a natural next step. 'Today, that ambition became a reality, but it is only the beginning. 'We will continue to push the boundaries of what's possible and to build a platform that not only meets the needs of today's investors, but also anticipates the opportunities and challenges of tomorrow.' Assia told CNBC: 'We felt that we're seeing the light at the end of the tunnel of the correction in the markets.' Back in 2022, the firm filed for an IPO, before scrapping the plans as equity markets saw a downturn. The firm was founded by brothers Yoni and Ronen Assia and David Ring in 2007. It has a popular Copy Trader feature that allows users to replicate strategies of experienced investors and 'smart portfolios' which it says offer diversified, analyst-curated investment options aligned with specific market themes. The Nasdaq debut, however, comes despite market turmoil caused by Donald Trump's tariffs, which has seen the likes of Klarna and Stada choosing to put their own offerings on hold. The firm cited the Israel-Hamas conflict as a potential business risk in its IPO filing. Etoro said: 'As a company headquartered in Israel, there is heightened risk of cyberattacks on our and our supply chain's IT networks in general, and more so as a result of the war. 'Although the current war has not materially impacted our business or operations as of the date of this prospectus, the continuation of the war and any escalation or expansion of the war could have a negative impact on both global and regional conditions.' Etoro shares are traded under the Nasdaq ticker 'ETOR'. Can you buy Etoro shares on the Etoro platform? Often, to buy US shares on a UK platform, you'll need a premium account to access them and to fill out a W-8BEN form, which declares your foreign status. Etoro shares can be purchased on the Etoro UK platform without a premium membership - although, you'll need to fill out the W-8BEN form.
Yahoo
27-03-2025
- Business
- Yahoo
Retail Trading Platform eToro Files for US IPO, Reports Surging Crypto Demand
Etoro, an online trading platform, has filed to go public in the U.S. The Israeli company said its commissions jumped 46% in 2024, driven in part by an increasing share of cryptocurrency trades. The initial public offering filing comes with cryptocurrency in the spotlight, particularly after President Trump ordered the creation of a U.S. strategic bitcoin retail trading platform eToro filed late Monday for an initial public offering in the U.S., disclosing commissions surged last year amid rising demand for crypto markets. The Israel-based company posted commissions of $931 million in 2024 on net income of $192 million, up from $639 million in commissions on net income of $15 million the year before, according to a regulatory filing Monday. A big reason for that is an increase in crypto assets trading, which made up 38% of eToro's commissions in 2024, more than doubling from 17% in 2023. The IPO filing comes as cryptocurrencies, particularly bitcoin, have been in the spotlight. President Donald Trump earlier this month announced the launch of a U.S. strategic bitcoin reserve and previously said he wants to make the U.S. the "crypto capital of the planet." Monday's filing is not eToro's first attempt at going public. The company announced in 2021 that it planned to merge with a special purpose acquisition company in a deal that would have valued the company at $10.4 billion, but the transaction was ultimately abandoned more than a year later. Read the original article on Investopedia Sign in to access your portfolio
