Stocks To Watch As Grand Theft Auto Online Stalls

Chris Lau, Kapitall: Grand Theft Auto Online didn't exactly leap off the starting line. But maybe some other companies can pull ahead. 

Server issued plagued the online release of Grand Theft Auto V. Slow load times and problems with accessing the online, multiplayer version of the game were reported by some users.

Read more from Kapitall about Grand Theft Auto: Take-Two and Grand Theft Auto: Buy or Sell?

This took away some of the shine from what was otherwise a successful launch. Grand Theft Auto V made $1 billion in sales in just three days. But the server issues forced distributor Take-Two Interactive (TTWO) to issue an apology. If these are ongoing problems for the gaming company, investors could look at related cloud computing investing ideas to pursue.

​Click on the interactive charts below to see data over time. Sourced from Zacks Investment Research. 

Cloud server farms

Take-Two may have had problems scaling its hardware to cope with the massive influx in activity from the game. The company will likely continue to add to its server farm to support the online game play.

Outside server support could also be an option, such as Amazon’s (AMZN) Amazon Web Services (AWS) . Digital River (DRIV) also provides end-to-end cloud-commerce support.

Digital River is much smaller than Amazon in terms of market capitalization. And AWS also has five times the combined capacity of cloud computing services of its next 14 rivals. Still, Digital River is another company to watch. In its last quarter, the company generated gross margin of 65.3%.

Click on the interactive chart to see data over time. Sourced from Zacks Investment Research. 

In the above chart, Bazaarvoice (BV) and Netease (NTES) turned up in a search for companies related to Digital River (using Kapitall’s related company search tool). Bazaarvoice has a Software as a Service platform that supplies product review functionalities for the online sites of major retailers. But the company is currently under investigation by the Department of Justice for its acquisition of rival PowerReviews, Inc.

And Netease operates online games in China, such as Activision’s (ATVI) World of Warcraft in the region.

Savvy investors may consider this a good time to look past the hype around the latest version of Grand Theft Auto, and look for alternative investing ideas. 

 

(Written by Chris Lau, a Kapitall contributor. All data sourced from Zacks Investment Research.)

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