Two top-performing video game stocks — Nintendo and Roblox — rose Tuesday on positive catalysts.
Nintendo's U.S. shares climbed on strong sales of the Japanese company's new Switch 2 game console.
On the stock market today, Nintendo's American depositary receipts jumped 3.7% to close at 21.55. The stock is in a flat base with a buy point of 22.08, according to IBD MarketSurge charts.
MoffettNathanson analyst Clay Griffin reiterated his buy rating on Nintendo stock and raised his price target on the company's Japan-traded shares.
"Nintendo Switch 2 is not just the fastest-selling console in Nintendo's history, but the fastest of any home console platform, at 3.5 million units sold-through in the first four days of availability," Griffin said in a client note Tuesday.
"Switch 2, like a perfectly timed start in 'Mario Kart World,' has blasted out of the gates," he said. "That's an unequivocal positive, for sure. But it's not the end of the story (or opportunity). Nintendo is growing a platform."
Roblox Stock Harvests Hit Game
Meanwhile, Roblox stock surged to a multiyear high of 101.44 on Tuesday on reports of robust user engagement related to hit game "Grow A Garden." Roblox ended the regular session up 0.7% to 101.12.
"This Saturday, 'Grow A Garden' set a new record for concurrent users inside a Roblox experience at 16 million players, according to Romonitor," Jefferies analyst James Heaney said in a client note. The spike was fueled by weekly game updates and social media publicity, he said.
The hit game is likely to translate to strong user numbers for Roblox's second-quarter report, Heaney said.
Roblox stock is on two IBD lists: IBD 50 and Tech Leaders.
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