That's because there are many out there that offer a simple, diversified way to tap into the next decade of disruption.

Three that stand out as explosive opportunities that could be worth buying and holding for years to come are named below. Here's what you need to know about them:

BetaShares Australian Technology ETF (ASX: ATEC)

The BetaShares Australian Technology ETF provides investors with exposure to homegrown innovators such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), TechnologyOne Ltd (ASX: TNE), and NextDC Ltd (ASX: NXT).

One company that highlights the long-term potential of this ETF is WiseTech Global. Its CargoWise platform is used by the world's largest logistics companies and has become the industry standard for managing global supply chains. As freight operators continue digitising and automating their networks, WiseTech's pricing power, global reach, and sticky customer base give it a long runway for growth.

Betashares recently recommended this fund to investors.

BetaShares Crypto Innovators ETF (ASX: CRYP)

For investors willing to embrace higher volatility in exchange for higher potential returns, the BetaShares Crypto Innovators ETF could be worth a shout.

It provides exposure to the stocks that are building the global cryptocurrency and blockchain ecosystem. Its holdings include digital asset exchanges, mining companies, and blockchain development firms such as Coinbase Global (NASDAQ: COIN), Marathon Digital Holdings (NASDAQ: MARA), and Riot Platforms (NASDAQ: RIOT).

Coinbase is the leading U.S. crypto exchange, it benefits directly from increasing institutional adoption of digital assets, rising transaction volumes, and the broader growth of decentralised finance applications. As blockchain technology continues to expand beyond trading into payments, tokenisation, and real-world applications, companies like Coinbase could play a central role.

While BetaShares Crypto Innovators ETF is not for the faint-hearted, over a long investment horizon, the potential upside of the digital asset industry could be substantial.

BetaShares Video Games and Esports ETF (ASX: GAME)

Gaming has evolved from a hobby into one of the world's largest entertainment industries. So much so, it is now bigger than the movie and music sectors combined.

The BetaShares Video Games and Esports ETF gives investors exposure to the companies driving that growth, including Tencent Holdings (SEHK: 700), Nintendo, and Electronic Arts (NASDAQ: EA).

A standout holding is Nintendo. Its iconic franchises, such as Mario to Zelda, continue to generate billions in global sales, while its hybrid Switch console remains one of the best-selling gaming systems ever. With esports expanding, digital sales rising, and subscription-based gaming becoming mainstream, companies in this ASX ETF's portfolio are well placed to benefit from lasting consumer trends rather than short-lived fads.

The BetaShares Video Games and Esports ETF provides a simple way to invest in an industry with massive and enduring global demand. It was also recently recommended by analysts at Betashares.

The post 3 explosive ASX ETFs to buy and hold appeared first on The Motley Fool Australia.

January 2025 was a bullish month for many Nasdaq-listed names. But that wasn't the case for all of them.

While the Nasdaq-100 index advanced 2.2% in January, a handful of its constituents (including a market favourite) lost quite a bit of ground. Here they are, from least bad to worst:

• Monster Beverage (NASDAQ: MNST): Down 7.3%
• Comcast (NASDAQ: CMCSA): Down 10.3%
• Nvidia (NASDAQ: NVDA): Down 10.6%
• Electronic Arts (NASDAQ: EA): Down 16%
• On Semiconductor (NASDAQ: ON): Down 17%

Not every one of these stumbles has a specific catalyst. Monster Beverage, for example, mostly continued to peel back from an overheated rally that peaked in November 2024.

Other setbacks have clear causes, though. For instance, Nvidia shares were upended by the recent introduction of DeepSeek's AI platform, which reportedly provides a range of artificial intelligence solutions without the need for the number of processors typically required for comparable results. If this new approach to AI becomes the norm, Nvidia's AI processor business may not have as bright a future as once anticipated.

Comcast's stock fell in response to a drop in last quarter's broadband customers, while Electronic Arts shares crashed after it lowered its full-year revenue forecast thanks to tepid demand for its latest soccer video game title.

As for On Semiconductor -- last month's biggest Nasdaq-100 loser -- shares were already lagging headed into the new year, but this sell-off accelerated after a Truist analyst downgraded the stock from a buy to a hold on concerns of weak demand.

Just don't jump to sweeping conclusions

Now what? Obviously, market-defying sell-offs are alarming. They are also warning signs of bigger potential problems ahead. Don't take these warnings lightly.

Not all extreme pullbacks are red flags, however. Sometimes they're opportunities to step into compelling stocks at a discount. Indeed, whereas Comcast is currently surrounded by too many questions to merit owning at this time, every other stock on this list at least has a shot at dishing out longer-term upside from their present prices.

Just bear in mind that there may still be some lingering bearish volatility left to wring out.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post These were the 5 worst-performing stocks in the Nasdaq-100 in January 2025 appeared first on The Motley Fool Australia.

The software industry is fertile ground for investors today. Demand is on a long-term upswing, supported by a steady shift toward online work and entertainment. Many software businesses have more attractive selling models that are becoming increasingly subscription based, in turn stabilizing cash flows. And valuations have declined sharply with the latest bear market.

With those positive factors in mind, let's look at two excellent options for investors seeking exposure to the sector. Read on for a few reasons to like Adobe (NASDAQ: ADBE) and Electronic Arts (NASDAQ: EA) stocks right now.

1. Adobe

Adobe stock has become cheaper this year, partly thanks to a growth slowdown and partly due to worries about its $20 billion acquisition of Figma. The growth hangover won't last forever, and the buyout will likely reward patient investors.

Adobe creates software products for digital creators ranging from students to huge global brands. Its cloud platforms have attracted many more customers this year, even on top of soaring growth in earlier phases of the pandemic. Sales are up to $13.1 billion through the first nine months of the year compared to $11.7 billion a year earlier.

Operating trends might look weaker over the next nine-month period, and Adobe is taking on some extra risk as it incorporates the new Figma business into its cloud platform. But the volatility from these issues should fade, allowing patient shareholders to generate solid returns by simply holding onto this software-as-a-service stock.

2. Electronic Arts

Electronic Arts is a video game developer boasting one of the industry's most dominant content portfolios. From sports franchises to adventure games, casual titles to battle royale brands, EA covers every industry niche and all of the popular monetization models.

That diversity is paying off. Sales in the most recent quarter were up 22% thanks to popularity across brands like FIFA 22 and Apex Legends. EA is also still boosting its earnings at a time when many other digital entertainment specialists are seeing falling profit margins.

That success is a big reason the stock is outperforming peers like Take-Two Interactive (NASDAQ: TTWO). But EA still looks attractive today at a valuation of less than five times sales, one of the cheapest rates investors have seen in the last seven years.

While demand in the video game industry might slow into 2023 as compared to the past few years, the long-term outlook is bright for this business. It is becoming more profitable and steadier, too, thanks to the shift to a subscription-based content model. As a result, investors are likely to see good returns in this software niche over time, especially if they focus on world-class businesses like EA.

Adding EA and Adobe to your portfolio might add volatility in the short term, given the rocky outlook for many tech specialists right now. In exchange for that bumpiness in returns, though, you'll get exposure to some world-class businesses that are almost certain to be posting stronger sales and earnings in five years than investors are seeing today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 top US stocks to buy for the long haul appeared first on The Motley Fool Australia.

Companies involved in the video game industry and listed on the Australian Securities Exchange (ASX) are known as ASX gaming shares or stocks. This includes companies that produce and distribute electronic games and the software and hardware required to play them. 

Video games have progressed significantly since they first appeared in the 1970s. They can now be played on various devices, from laptops and game consoles to mobile phones. This means people can now essentially play them anywhere, anytime. 

Video game stocks benefit from advancements in technology and the advent of entirely new technologies. Augmented and virtual reality, for example, allows players to immerse themselves more completely in the games. 

The gaming industry remains one of the fastest-growing segments of global entertainment. According to Newzoo, global games revenue is expected to exceed US$205 billion in 2026, with steady growth driven largely by mobile gaming and live-service titles¹. While forecasts have moderated from earlier projections, the sector's scale and recurring revenue models continue to underpin its long-term growth outlook.

Why invest in gaming stocks? 

Worldwide, billions of people have access to smartphones, meaning every one of them is a potential gamer. It's no longer a niche interest. Gaming has become a genuine source of entertainment for people of all ages across different consumer segments. 

Mobile games help people while away their morning commute. And the advent of eSports means that some people are even pursuing online gaming as a full-time profession.

And it's not just playing electronic games that people are interested in. The rise of gameplay live streaming shows that people are interested in watching others play, too. 

Companies involved in the gaming industry include games developers, hardware manufacturers, and those involved in publishing and distribution. Each plays an essential role in the video game ecosystem and can have multiple sources of revenue. 

When a gaming product develops a loyal fan base, additional revenue can be sourced from promotional material, downloadable content, sequels, and expansion packs. The gaming sector is growing, with global player numbers estimated to already be over 3.3 billion in 2026.² 

An investment in a gaming stock can provide exposure to a fast-growing and innovative industry, which is set to benefit from ongoing technological advancement. 

Top ASX gaming shares

(ranked by market capitalisation from high to low)

Aristocrat Leisure 

Aristocrat is a gaming content and technology company and mobile games publisher, offering products such as electronic gaming machines, casino management systems, and free-to-play mobile games.

It operates across two main segments: land-based casino gaming and a growing digital business spanning web and mobile platforms. This diversification has become increasingly important as player behaviour shifts toward online and mobile gaming.

While the company has faced recent share price weakness following softer-than-expected results, its core business remains resilient. Aristocrat continues to benefit from strong recurring revenues, a leading position in key markets like North America, and a large portfolio of gaming content distributed globally.

The company's scale and long-standing relationships with casino operators give it a competitive edge, while ongoing investment in design, development, and emerging technologies such as artificial intelligence is helping to improve product quality and speed to market.

Aristocrat has also maintained a disciplined approach to capital management, including returning capital to shareholders and managing its balance sheet.

Looking into 2026, the company is focused on expanding its digital footprint, pursuing growth opportunities, and strengthening its position across both physical and online gaming. However, investors should be aware that earnings can be influenced by economic cycles, regulatory changes, and shifts in consumer spending, which may contribute to periods of volatility.

Jumbo Interactive

Jumbo Interactive is a lottery technology company that helps governments, not-for-profits, and charities design, manage, and grow digital lottery programs. It takes a player-centric approach, using data and technology to create more engaging online lottery experiences across multiple platforms.

The company operates across lottery retailing, managed services, and charity fundraising, with a growing international presence. While it has long held the rights to sell major Australian lottery products online, its strategy is increasingly focused on expanding offshore, particularly in markets like the United Kingdom and Canada.

Although the share price has weakened in recent months amid softer jackpot activity and broader market pressures, the underlying business continues to perform well. Recent results showed strong growth across key segments, with total transaction value rising to over $500 million for the half year and underlying EBITDA increasing to around $37.5 million.

Jumbo's diversification beyond traditional lottery retailing is becoming more important. Growth in its managed services and SaaS-style offerings is helping drive more stable, recurring earnings, even as jackpot cycles create some variability in its core business.

From a valuation perspective in eaerly 2026, the company is trading on a price-to-earnings (P/E) ratio of roughly 14–15 times, which is below levels seen during its earlier growth phase. It also maintains a solid dividend profile and a disciplined approach to capital management, appealing to income-focused investors.

Moving forward, Jumbo is focused on scaling its international operations and leveraging its technology platform to drive further growth. However, performance can still be influenced by jackpot cycles, consumer spending trends, and broader market sentiment, which may lead to periods of share price volatility.

Ainsworth Game Technology 

Ainsworth Game Technology is a fully integrated gaming machine company that designs, develops, and manufactures its own range of gaming products. It operates across the entire product lifecycle, generating revenue through the sale, leasing, and servicing of gaming machines.

Although headquartered in Sydney, Ainsworth has a global footprint, with a strong presence across North America, Latin America, Europe, and Australasia. A significant portion of its revenue is generated offshore, reflecting its focus on international growth markets.

The company has faced a mix of operational challenges and uneven earnings in recent years, including regional headwinds and regulatory pressures. However, its scale and exposure to key gaming markets have helped support revenue growth, with annual revenues previously exceeding $140 million despite volatility in profitability.

More recently, Ainsworth has come into focus following a takeover offer from its majority shareholder, which values the company at approximately $330 million and implies a valuation of around 7 times EBITDA. The proposal represents a notable premium to its recent trading levels and has driven a sharp re-rating in the share price.

The potential acquisition highlights both the strategic value of Ainsworth's global operations and the challenges it has faced as a standalone listed company. If completed, it would provide shareholders with certainty of value, while underscoring ongoing consolidation trends in the gaming technology sector.

Ainsworth's outlook remains tied to global gaming demand, regulatory developments, and execution across its key markets. While the takeover may cap near-term upside, it also reflects underlying value in the business despite recent volatility.

What to look for when buying ASX gaming stocks 

As competitive gaming cements itself in popular culture, investors, consumers, media outlets, and brands are all paying attention. 

The United States has more gaming stocks listed than Australia, including some of the sector's most valuable companies. These include Electronic Arts Inc (NASDAQ: EA) and Activision Blizzard  — which tech giant Microsoft Corp (NASDAQ: MSFT) recently acquired for an eye-watering US $69 billion.

Goes to show how lucrative the gaming industry has become! 

Investors looking to spot the next Activision Blizzard will want to hone in on financial data like how fast a company grows revenues, its total returns, and its product pipeline. Have a look at the strength of the company's fanbase, particularly if it spans multiple demographics. Remember, it's not just teenage boys playing video games anymore — it's men, women, and children, both old and young. 

Like investing in any stock market sector, an investment in the gaming sector involves risk, and requires research. Learning, tracking, and staying engaged is crucial. The growing prominence of the industry makes it an attractive prospect for investors seeking growth. Based on facts and thorough research, deciding which industry players to back should be an informed decision. 

Pros of investing in ASX gaming shares

High growth prospects: The gaming industry is developing rapidly and received tailwinds from the COVID-19 pandemic. Some data indicates that the pandemic accelerated the gaming industry's adoption and subsequent growth. Maintaining player engagement will now be a key challenge for gaming companies.

High margins: Gaming companies often have higher average margins than companies in other industries. Profit margins can be around 90% for hit games with significant opportunities for ongoing revenue from selling virtual goods within digital gaming environments. This compares to margins of about 40% for the average successful console game.

And the cons

Rapid change: The gaming industry can experience sudden shifts with the introduction of new and improved products and the disappearance of legacy gaming systems. Remember Atari? Probably not.

Operational profitability: Trends in gaming are hard to predict, making gaming companies particularly unreliable. Sudden project failures, fan backlashes, and quality issues are not uncommon in the industry. Video games can be costly and time-consuming to produce. And marketing costs have increased in recent years as companies fight for top-ranking visibility in a competitive market. 

Volatility: Gaming shares are a subset of technology shares, which can have high valuations and volatility compared to the stock market as a whole. This means they are often higher-risk investments, with share prices fluctuating considerably over time. This means you should do your research and not invest more than you can afford to lose. 

Are ASX gaming shares a good investment? 

The video game sector has significant long-term expansion potential. The industry benefited from a surge in interest during the COVID-19 pandemic. It is now seeking to retain new gamers acquired during lockdowns. Companies adapting to players' demands and shaping tastes for interactive electronic entertainment should be well-positioned to deliver positive returns. 

Whether Australian shares in the gaming sector are a good choice for your portfolio will depend on your investment goals, risk tolerance, and financial situation. Gaming shares can be volatile and trade at high price-to-earnings (P/E) ratios. Nonetheless, if you are interested in technology and electronic entertainment, gaming stocks may be rewarding.

For investors seeking exposure to the industry as a whole rather than individual companies within it, an exchange-traded fund (ETF) such as Betashares Video Games and eSports ETF (ASX: GAME) may be a good option. Remember that any investment in equities involves risk. You should seek financial advice if required prior to making your investment decision. 

• Additional reporting: Rhys Brock

The post Investing in ASX gaming shares appeared first on The Motley Fool Australia.

WAM Global is one of WAM's newer LICs, only hitting the ASX back in 2018. It was a first for the fund manager, considering WAM Global would be the first Wilson LIC to focus on companies outside the ASX (hence the name).

Since its ASX IPO back in June 2018, WAM Global has gone on to deliver an average performance of 12.1% per annum since. This includes some healthy dividend growth as well. WAM Global shares today offer a fully franked trailing yield of 3.5%.

WAM's ASX wedding bells toll

Well today, it seems WAM Global is set to grow even larger. In an ASX announcement this morning, WAM Global told investors it has entered into a scheme with Templeton Global Growth Fund Ltd (ASX: TGG). This will allow the two funds to merge. Under the scheme, all Templeton shareholders will receive WAM Global shares and options. Shareholders can also choose to have their shares bought back by WAM for a cash consideration if the scrip offer isn't appealing.

The exact cash/scrip numerations have yet to be determined. But WAM Global has stated that the scrip offer will be "calculated by reference to the relative NTA [net tangible assets] per share after tax, but before deferred taxes of WAM Global and TGG". The cash offer, should investors choose to take it, will consist of shareholders receiving "cash equal to the NTA per [Templeton] share after all current and deferred taxes and associated transaction costs".

Until the review of an "independent expert" over the deal, Templeton Global Growth Fund's board has given their initial approval. They have told investors that they intend to vote in favour of the merger.

WAM Global founder and chair Geoff Wilson stated the following:

The WAM Global Board of Directors believe that the Scheme will be beneficial to both companies and result in a superior merged entity leveraging Wilson Asset Management's proven investment strategy. We look forward to welcoming TGG shareholders to the Wilson Asset Management family as we continue to grow WAM Global.

WAM Global estimates that if all goes to plan, the merger can be implemented by the end of October 2021.

What would a combined LIC look like?

As we touched on earlier, WAM Global invests in companies mostly outside the ASX and Australia. Its current portfolio (as of 31 May 2021) is weighted 56.4% to US companies, 10.4% to German companies and 7.5% to British shares, amongst others. Some of WAM's top holdings at the current time include Chinese giant Tencent Holdings ADR (OTCMKTS: TCEHY). As well as payments behemoth Visa Inc (NYSE: V) and gaming titan Electronic Arts Inc. (NASDAQ: EA).

Meanwhile, Templeton Global Growth's top holdings (also as of May) include JPMorgan Chase & Co. (NYSE: JPM), Samsung Electronics Co Ltd (OTCMKTS: SSNLF), American Express Company (NYSE: AXP) and Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM). Templeton is also weighted heavily to the USA, which has a 36.9% weighting in the fund. Other significant geographical exposures come from Britain, Germany, Japan and South Korea.

The post WAM Global (ASX:WGB) swallows Templeton in massive ASX merger appeared first on The Motley Fool Australia.