After underperforming in 2009, video game stocks are poised to improve in 2010, said Arvind Bhatia, video game and entertainment analyst at Sterne, Agee & Leach. He shared his market insights.
“The market feels that we might be bottoming out when it comes to the video game stocks and it might be representative of the consumer discretionary environment,” Bhatia told CNBC.
“In 2009, they underperformed, but March might be the first month where we see start to see a recovery, because comparison starts to get easier for the rest of the year.”
Bhatia said there are also various catalysts that will drive the video stocks going forward.
“Sony’s motion controller and Microsoft’s Project Natal—these are technologies that could propel investor and consumer interests back in the stock and space,” he described.
“Activision as a growth story or GameStop as a value play—those are two stocks that haven’t necessarily participated in the rally recently and these two stocks can do well.”
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Sterne, Agee & Leach makes a market in the shares of THQ, GME, ATVI, ERTS and TIVO.