The rapid advancement in technology has led to a surge in demand for the media and entertainment industry. This growth is fueled by the popularity of social video platforms, specialized streaming services, and cloud gaming. Online gaming, in particular, has created new opportunities for the global gaming industry.
Investors looking to capitalize on the promising prospects of the entertainment sector may consider investing in fundamentally solid entertainment stocks such as Accel Entertainment, Inc. (ACEL), DoubleDown Interactive Co., Ltd. (DDI), and PlayAGS, Inc. (AGS), which offer both value and growth potential.
The entertainment industry has undergone significant transformations, adapting to the increasing internet penetration and the widespread use of social media platforms. According to Statista, the global entertainment market is projected to reach $53.13 billion by 2027.
The global movies and entertainment market is expected to grow at a CAGR of 8.1%, reaching a revenue volume of $169.68 billion by 2030. Factors contributing to this growth include favorable demographics, cloud gaming, changing consumption patterns, rising disposable incomes, and a willingness to spend on leisure and entertainment.
Cloud gaming, in particular, has become more accessible, leading to a significant increase in demand. The global cloud gaming market is forecasted to reach $6.62 billion by 2034, growing at a CAGR of 22.6%.
Additionally, factors such as traditional gambling culture, regulatory advancements, tourism appeal, and innovative gaming technologies have contributed to the growth of the casino market. The market is expected to expand to $165.72 billion by 2028, driven by the emergence of cryptocurrency, regulatory changes in online gambling, and advancements in gaming technology.
Given these positive trends, it is worth delving deeper into the fundamentals of top entertainment stocks like ACEL, DDI, and AGS.
ACEL operates as a distributed gaming operator, involved in the installation, maintenance, and operation of gaming terminals and other amusement devices. The company’s financial metrics show strong performance, with revenue and EBITDA growing at impressive rates over the past three years.
DDI, headquartered in Seoul, South Korea, develops and publishes casual games and mobile applications. The company’s financial indicators also show robust growth, with revenue and operating income increasing year-over-year.
AGS designs and supplies gaming products and services for the international gaming industry. The company’s revenue and EBITDA have grown consistently over the past three years, showcasing strong financial performance.
Overall, these entertainment stocks offer promising growth potential and value for investors. It is essential to conduct thorough research and analysis before making investment decisions in the dynamic entertainment industry.