3 Mobile Game Stocks That Will Soar 19% or Higher, According to Wall Street

The COVID-19 pandemic has fueled enormous demand for online gaming platforms since people have been forced to spend much more time at home. In addition, seamless internet connectivity and increasing smartphone penetration have been driving the mobile gaming industry’s growth. The integration of advanced technologies, such as…

augmented reality (AR) and virtual reality (VR), is expected to help the industry gain momentum in the coming months. The global market for mobile gaming is expected to reach $94.8 billion in 2022 and $139.5 billion by 2026, growing at an 11.5% CAGR .

Therefore, Wall Street Analysts expect fundamentally strong mobile gaming stocks Tencent Holdings Limited (TCEHY – Get Rating), Skillz Inc. (SKLZ – Get Rating), and PLAYSTUDIOS, Inc. (MYPS – Get Rating) to soar in the coming months.

Tencent Holdings Limited (TCEHY – Get Rating)

Headquartered in Shenzhen, the People’s Republic of China, TCEHY is an investment holding company that provides value-added services (VAS) and online advertising services internationally. The company’s operating segment comprises VAS; Online Advertising; FinTech and Business Services; and Others segments.

TCEHY’s revenue increased 7.9% year-over-year to RMB144.19 billion ($22.62 billion) in the fourth quarter, ended Dec. 31, 2021. Its operating profit increased 72.2% from its year-ago value to RMB109.72 billion ($17.22 billion), while its profit for the period grew 61.2% from the prior-year quarter to RMB95.71 billion ($15.02 billion). The company’s EPS rose 60.1% year-over-year to RMB 9.788.

Top 10 Stocks for 2022

Analysts expect TCEHY’s EPS to increase 23.5% year-over-year to $1.89 in fiscal 2023, while its revenue is expected to grow 6.9% year-over-year to 22.48 billion in the first quarter, ending March 31, 2022.

The 12-month median price target of $55.00 indicates a 19% potential upside. The stock closed its last trading session at $46.21.

Skillz Inc. (SKLZ – Get Rating)

SKLZ in San Francisco offers a mobile gaming platform that connects players in fair, fun, and meaningful competition. The company develops and supports a proprietary online-hosted technology platform that allows independent game developers to host tournaments and provide competitive gaming activity to end-users worldwide.

SKLZ recently announced a multi-year partnership with UFC®, a leading mixed martial arts organization. This partnership would enable SKLZ’s developers to create UFC-branded competitive mobile games that are co-promoted by UFC and SKLZ. This was revealed at the Game Developers Conference (GDC) in San Francisco. “Skillz’ partnership with UFC is part of our winning strategy that aligns Skillz’ disruptive competitive mobile games platform with the business of sport,” said Andrew Paradise, CEO of Skillz.

During the fourth quarter, which ended Dec. 31, 2021, SKLZ’S revenue increased 60.7% year-over-year to $108.85 million, while its gross profit grew 56% to $100.4 million. The cash and cash equivalents stood at $241.33 million for its fiscal year ending Dec. 31, 2021.

Analysts expect SKYZ’s revenue to increase 6.4% year-over-year to $89.04 million in the first quarter, ending March 31, 2022. Furthermore…

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