Hedge Funds’ Favorite Gaming Stocks amid Robust-Growing Video Gaming Industry

#2. Activision Blizzard Inc. (NASDAQ:ATVI)

– Investors with long positions as of March 31: 52

– Aggregate value of investors’ holdings as of March 31: $2.19 Billion

The number of money managers observed by Insider Monkey with long positions in Activision Blizzard Inc. (NASDAQ:ATVI) fell to 52 from 53 during the first quarter of the year, while the value of those positions plunged to $2.19 billion from a much higher figure of $3.01 billion. The 52 asset managers invested in Activision Blizzard stockpiled nearly 9% of the company’s outstanding shares. The developer and publisher of interactive entertainment has seen its shares advance 23% in the past three months and can go even higher, thanks to the apparent success of the company’s newest title Overwatch. The team-based first-person shooter, one of the most anticipated video game releases of the year, is believed to represent a major catalyst for Activision Blizzard’s revenue and earnings growth in the quarters and years ahead. “Overwatch looks like a hit”, claimed Jefferies analysts in a note to investors released earlier this week. Daniel S. Och’s OZ Management added a 4.81 million-share position in Activision Blizzard Inc. (NASDAQ:ATVI) to its equity portfolio during the first quarter.

#1. Electronic Arts Inc. (NASDAQ:EA)

– Investors with long positions as of March 31: 56

– Aggregate value of investors’ holdings as of March 31: $1.56 Billion

The smart money sentiment towards Electronic Arts Inc. (NASDAQ:EA) also fell slightly during the first three months of the year, as the number of money managers with stakes in EA declined to 56 from 57. What’s more, the overall value of those stakes plummeted to $1.56 billion from $2.26 billion registered at the end of the December quarter. The 56 “EA” investors hoarded up nearly 8% of the company’s outstanding common stock. The shares of the video game giant have touched a new all-time high earlier this month and are up by 9% so far in 2016. Electronic Arts, which generated GAAP net revenue of $4.40 billion in fiscal 2016 that ended March 31, plans to add $1 billion in incremental revenue over the next three to five years. The company anticipates GAAP net revenue of $4.75 billion for the current fiscal year that ends March 31, 2017. MKM Partners analysts believe the company could generate a bottom-line figure of $5 per share in fiscal 2020, while Wall Street analysts anticipate earnings per share of $3.58 for fiscal 2017. Philippe Laffont’s Coatue Management reported ownership of 5.90 million shares of Electronic Arts Inc. (NASDAQ:EA) in its latest 13F.

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