Several video gaming stocks debuted their IPOs recently and among them is Roblox Corp (NYSE: RBLX), which has been moving heads, but Unity Software (NYSE: U) seems to be a better choice.
The video gaming sector has excited investors this past year as gaming became mainstream due to pandemic enforced lockdowns. This led to people turning to video games for entertainment, making gaming socially acceptable and, as a result, creating massive momentum in the industry.
Roblox and Unity are exciting since they are different from conventional gaming companies like Electronic Arts (NASDAQ: EA). The companies have different models of generating revenue from those of traditional gaming stocks. For instance, Unity has a software engine that goes into a lot of video gaming content. Roblox has built a gaming ecosystem with a virtual players’ universe, and there is a lot to do within. The software engine enables users to create their games, offering a range of activities for players. Roblox is leveraging the recent momentum in the gaming sector, and it will be a stock to watch in the coming months.