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8 Plays for Video Game Stocks

By U.S. News & World Report

Seek the ultimate prize in video game stocks.

It’s all too easy to dismiss video games as kids’ stuff, especially if you’ve got a teenage spawn glued to a screen despite all entreaties to do homework or eat. But from an investor’s viewpoint, Junior’s onto something: Video games equal big, big business. In fact, you could compare the sector to an action platform battle — call it Call of Lucre — where the object is to slog your way past hype traps and prophets of doom in search of the ultimate prize: profits. Here’s a look at eight video game stocks that are truly in it to win it.

Activision Blizzard (Nasdaq: ATVI)

In 2015, the Santa Monica, California-based giant behind the Call of Duty franchise placed a risky bet, purchasing King Digital for $5.9 billion. King’s only claim to fame was the blockbuster Candy Crush — but a year later, ATVI was up a fifth. Since the King deal, Activision has rocketed more than 180 percent, now trading at $63 per share. That includes a 67 percent jump in 2017, with new revenue driven by expansion packs that add content to already popular games.

Electronic Arts (EA)

Among gamers, EA has fostered no shortage of disdain: Two years straight (2012-13) Consumerist named Electronic Arts the worst company in America. The stock had fallen two-thirds in six years, prompting EA to begin an aggressive effort to reverse its image of a greedy company making subpar products. It’s paid off handsomely. This maker of the Madden football series has seen its stock go up nearly 400 percent since 2014.

Nintendo Co.

Nintendo’s Wii line never quite caught on with consumers — and then the company literally threw the Switch. The hybrid Switch console is the first of its kind, letting gamers play at home through their TVs or on the go. It has become the fastest-selling console to hit Japanese market, at more than 3.2 million units in 2017 and more than 10 million worldwide. Since the Switch bowed in March, over-the-counter Nintendo is up 76 percent.

GameStop Corp. (GME)

A staple in strip malls, GameStop’s 4,400 domestic stores also serve as de facto gaming nerd hangouts. Yet the chain hasn’t fared nearly so well as the rest of the industry, announcing in March it would close more than 100 stores worldwide. GameStop stock began its tumble in October 2015, when weaker-than-expected third-quarter sales punished shareholders. Since then, GME has sunk 61 percent and in 2017, the stock dropped nearly a third.

Sony Corp. (SNE)

The Japanese electronics empire saw one of its first-year sales records tumble, as Nintendo’s Switch bested the mark held by PlayStation 2. Sony hasn’t released a major PlayStation update since the PS4 in 2015 — and fans awaiting Version 5 could wait until 2021, according to industry analysts. But the likely reason is the PS4, among gaming tricks, prints money. Sales have topped 70 million consoles and helped propel Sony stock 60 percent higher in a year.

Ubisoft Entertainment

While the name doesn’t boast the same general market cache as Sony or Microsoft, Ubisoft has risen from a rural French startup into a major player, thanks to franchises such as Assassin’s Creed and Watch Dogs. Trading in Europe under the UBI ticker, Ubisoft has an $8.6 billion market cap and five years of uninterrupted share-price growth. If you bought into Ubisoft in January 2013, your stock would be worth more than eight times the original investment today.

Microsoft Corp. (MSFT)

Some of Microsoft’s investments, such as its $26.2 billion purchase of LinkedIn, are difficult to connect to any bottom line profit or loss. But there’s no doubt the Xbox platform, introduced in November 2001, has proven a literal game changer. Xbox was once considered dicey — Microsoft had no prior experience making gaming consoles — but to date, all Xbox variations have combined worldwide sales topping 140 million. Over five years, MSFT shares have more than tripled.

Sega Sammy Holdings

Sega was once a console kingpin — ’80s gamers remember the Sega Genesis fondly — but hard times forced it into a merger and a switch to game development. Sonic the Hedgehog, besides saving the world from the evil Dr. Robotnik, has kept Sega alive; the character inspired a comic book, TV, movie and toy lines and several gaming reboots. Yet even Sonic has his work cut out for him. Sega Sammy stock fell 20 percent in 2017 on the Tokyo Stock Exchange.

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8 Plays for Video Game Stocks originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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