Video games are still all the rage. In a sector that increases with time, consumer trends serve as an underlying base for whether investors should buy into the market.
Here are three things to consider. First, a company that can take advantage of a growing trend of mobile and online gaming is king. Second, a strong pipeline is very important. Finally, consistent profits through digital subscriptions help companies attain better revenue.
In the video-game space, Zyngadoesn't fare so well. But companies such as the Chinese game maker Changyou.com, which makes popular online games, and the more traditional gaming company Electronic Arts, remain champions.
If you're wondering about the bearishness on Zynga, take some time to read Zynga's special report. You can learn everything you need to know about this company and whether it's a buy or a sell in our new premium research report. Don't even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.
The article 3 Things to Watch in the Video-Game Sector originally appeared on Fool.com.
Mark Reeth, Max Macaluso, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.