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Expanding their monthly active user bases amid the pandemic has helped companies in the video game industry generate huge profits. The launches of Microsoft (NASDAQ:MSFT) Corporation’s (MSFT) Xbox Series X/S and Sony (NYSE:SONY) Corporation’s (SONY) PlayStation 5 in late 2020, along with Netflix, Inc.’s (NASDAQ:NFLX) expansion plans into video games, has been incentivizing companies to develop captivating video games to compete and maintain their user bases in response to peoples’ desire to return to outdoor entertainment alternatives. The global mobile gaming industry is projected to grow at an 11.5% CAGR to $153.50 billion by 2027. Rising investor optimism in the industry is evident in the Global X Video Games & Esports ETF’s (HERO) 14.6% returns over the past nine months. So, both PLTK and SKLZ should benefit from the industry tailwinds.
In terms of their past three months’ performance, SKLZ is a winner with marginal gains, versus PLTK’s negative returns. But, which of these stocks is a better pick now? Let’s find out.
