A Safer Way to Play Mobile Gaming Stocks

Updated

In today's video, Tamara looks at the fast-growing mobile gaming industry. With the global gaming market on track to reach $17 billion in sales by 2015, there are massive opportunities for investors. However, not everyone can stomach the risks inherent in speculative names such as Zynga (NAS: ZNGA) . A safer way to play in this space is by investing in the platform providers.

Companies such as Apple (NAS: AAPL) , Facebook (NAS: FB) , and Google (NAS: GOOG) take up to 30% of the app sales as well as in-game purchases processed by Zynga and others in the space. Apple's a big winner here, with more than 30 billion application downloads and upwards of $5 billion in payments to developers. This revenue share has been a significant source of income for Facebook as well, with Zynga accounting for 12% of the social network's total revenue.

At the time thisarticle was published It isn't always easy to know which stocks will outperform and which will fizzle. Luckily, some of The Motley Fool's brightest analysts have done the hard work for you. Getinstant accessto our free report titled "Forget Facebook -- Here's the Tech IPO You Should Be Buying."Fool contributor Tamara Rutter owns shares of Apple. Follow her onTwitterusing the handle@TamaraRutterfor weekly stock picks and other Foolish insights. The Motley Fool owns shares of Facebook, Google, and Apple.Motley Fool newsletter services have recommended buying shares of Apple and Google, as well as creating a bull call spread position in Apple. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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