© Reuters. Skillz vs. Ubisoft: Which Electronic Gaming Stock is a Better Choice?
The gaming industry has achieved unprecedented growth since last year due to social distancing mandates and stay-at-home restrictions. And as the rapid spread of the COVID-19 Delta variant leads to the reimposition of social distancing mandates in many locales, we think gaming stocks Skillz (SKLZ) and Ubisoft (UBSFY (OTC:)) should benefit. But which of these stocks is a better buy now? Keep reading to find out.Skillz Inc. (SKLZ) in San Francisco is a technology company that enables game developers to monetize their content through fun and fair multiplayer competition. In comparison, Ubisoft Entertainment SA (UBSFY) produces, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats worldwide.
Since last year, the electronic gaming industry has been booming, driven by rising interest in indoor entertainment amid social distancing mandates and stay-at-home orders. In 2020, mobile games generated $77.20 billion in revenues. Players increased 12% to 2.5 billion. Analysts expect the global games market to generate $175.8 billion in revenues in 2021 and more than $200 billion by the end of 2023. So, SKLZ and UBSFY should benefit.
SKLZ shares have declined 70.8% in price over the past six months, while UBSFY has slumped 31.8%. Also, SKLZ’s 47.5% loss year-to-date compares with UBSFY’s 37.4% loss.