Gaming is one of the most popular activities to take up our free time and actually it even replaces other activities we should probably be doing instead. In today’s world of hand held instant access to anything and everything, companies like SPYR, Inc. (OTCMKTS:SPYR) are a bargain at its current share price of $0.26. At this price an investment would be much easier on the pocketbook than let’s say purchasing the common stock of industry magnates Activision Blizzard, Inc. (NASDAQ:ATVI) or Electronic Arts, Inc. (NASDAQ:EA) who trade at about $40-$41 and $76-$77, respectively.
Activision Blizzard has been a model for growth in the gaming industry. Let’s take a look at the company’s stock price over the past 4 years. Since December of 2012, shares of Activision Blizzard have grown from $10.65 per share to its current level of $40-$41 per share, nearly quadrupling its share price in that time frame. This is of course due to its portfolio of massively popular PC, gaming console, and mobile games including the popular franchises: World of Warcraft, Diablo, Call of Duty, Destiny, and of course the Candy Crush Suite of mobile games.
Electronic Arts has had an even better run over that time frame having gone from a per share price of $11.02 in July 2012 to its current level of $76-$78 per share. What an amazing investment return over a four-year period. If every company could return 7X like Electronic Arts, life would be so much better. Electronic Arts owns the eSports gaming segment thanks to its immensely popular franchises FIFA and Madden NFL. The company’s product portfolio also includes the well-known games Star Wars, Battlefield, The Sims, Need for Speed, and Titanfall.
Now if we do the same four-year comparison with our main contestant SPYR, you see that in November 2012 the common stock was trading sub penny before jumping all the way up to $0.96 per share in April 2015 and now still up more than 26X to its current level of $0.26-$0.27 per share. This success is greatly attributed to a seasoned and experienced management team that knows the importance of diversifying its product offerings, and also to the recent success of SPYR’s popular game Pocket Starships.
Pocket Starships success can be measured by its outperformance against the industry averages with respect to its Average Revenue Per Daily Active User (ARPDAU). Games in the Action, Strategy and Role Playing genres, all of which Pocket Starships could be classified under, had ARPDAUs of $0.075, $0.047, and $0.087 respectively during early 2016. In 2016, Pocket Starships has continuously exceeded these averages by a large margin. Pocket Starships’ ARPDAU was $0.15 for January 2016, $0.18 for February 2016, $0.16 for March 2016, $0.33 for April 2016 (though data appears to show an anomaly in this month), $0.21 for May 2016 and $0.22 for the first two weeks of June 2016.
Paul Thind, SPYR’s Managing Director of Games and Apps, states: “We are very happy with the metrics Pocket Starships is currently showing. The fact that we have ARPDAUs for each month of 2016 that exceed industry standards by such a large margin is very exciting. While we’re working with a relatively small sample size of approximately 30,000 active monthly users at this point, we believe that these numbers reflect the strong revenue generating potential of Pocket Starships.”
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