On May 22, we highlighted Penn National Gaming (PENN) as an opportunity.
At the time, it traded at $29.30. It’s now up to $32.39 and pushing higher on hopes the U.S. economy can successfully reopen. Morgan Stanley also maintained its overweight rating on the stock with a price target of $32 from an earlier target of $21.
As for new opportunities, take a look at Glu Mobile (GLUU).
While the stock has more than doubled from March 2020 lows, there’s still plenty of opportunity remaining. Initially, the stock exploded on the COVID-19 pandemic, with the World Health Organization encouraging folks to stay home, and play games.
While the stock is pulling back as “stay at home” orders are lifted, that wasn’t the only key catalyst. The other – demand for mobile gaming has been incredibly explosive. More than 2.7 billion global gamers are expected to spend nearly $160 billion on games just this year, according to market researcher Newzoo. Better, mobile gaming could generate up to $77.2 billion this year – 13.9% growth year over year.
We’d like to see GLUU closer to $15, near-term as the mobile gaming boom gets underway.