Connect with us

Technology

The Two High-Growth Sectors That Could Outperform Tech

Published

on

The Two High-Growth Sectors That Could Outperform Tech

Over recent years, there has been no bigger opportunity for investors than technology.

The FAANG stocks alone have gained over $1 trillion in market capitalization since 2014 – and these stocks, along with other tech movers and shakers, have helped propel indices to constant new highs.

Growing Competition

While tech shows no signs of letting up on its dominance over markets, investors should know about two other multi-billion dollar sectors nipping at its heels. In today’s infographic, done in conjunction with SmallCapPower, we’ve highlighted the macro investment cases behind tech as well as these other high-growth areas: battery metals and cannabis.

For those interested, they’ve also published a watch list of nine stocks with double or triple-digit growth in these sectors.

The infographic highlights three of the top performing stocks in these sectors YTD. Don’t forget to see the full list of nine stocks.

Secular Trends

Like technology, the battery metals and cannabis sectors have upside attached to secular trends that are changing our world.

Technology: “Software is eating the world”
Battery Metals: The green energy revolution
Cannabis: Legalization and decriminalization of cannabis products

As a result, all of these sectors are poised to continue expanding at rapid rates:

TechBatteriesLegal Cannabis
Market size (2016)$880B$57.0B$6.7B
Market size (2021e)$1.03T$82.9B$20.4B
Increase (%)17%45%204%

It’s worth mentioning that above projections are based on the overall IT sector, the rechargeable batteries market, and the legal cannabis market.

Further, it’s also important to recognize that individual subsectors within tech are growing much faster than the overall market as a whole, such as the blockchain, IoT, cybersecurity, SaaS, AI, and VR/AR.

Sustainable Growth Drivers?

While there’s no shortage of hype around tech, battery metals, or cannabis, it is also clear that all of these markets will only grow in importance over time.

In technology, for example, the slower-moving verticals like healthcare, government, finance, and education are only starting to get disrupted. The blockchain is in its early days and will touch many aspects of life, and AI alone is expected to have a $15.7 trillion impact by 2030.

Meanwhile, the green revolution is driving the future importance of battery metals like lithium, cobalt, nickel, and graphite. As EV penetration grows, so does lithium-ion battery use – and these metals are all needed to make them work.

Finally, the trajectory of legalized cannabis seems difficult to stop. In multiple states, cannabis is already available for recreational use – and in recently-legalized places like Canada and California, the recreational shops will open up very soon. However, the cannabis industry is still in its infancy, and many millions of people are still expected to gain access yet. This, like the other two industries, creates a fast-growing opportunity for both business and investors.

Click for Comments

Technology

Charting Grand Theft Auto: GTA’s Budget and Revenues

Dive into the GTA budget through the years, with GTA VI set to be the most expensive video game of all time.

Published

on

A cropped chart comparing the GTA budget and revenue across three game titles.

Charting Grand Theft Auto: GTA’s Budget and Revenues

Over 10 years since the launch of Grand Theft Auto V (GTA V), the second most-sold video game in history, Rockstar Games has announced its sequel GTA VI will be “coming 2025.”

As the anticipation only grows for this next big entry in the franchise, we take a look at the GTA budget through the years. How much have the last two games cost to make, how much have they earned, and how do they compare with the latest entry?

Data for this visualization comes from Statista, TweakTown, and Twitch Metrics.

How Much Has GTA VI Cost to Make?

The GTA franchise has grown enormously in scale from humble beginnings as a top-down, 2D video game in 1997. Fifteen installments later, the upcoming release, GTA VI, is estimated to be the most expensive video game to be made yet.

Here’s a look at how much GTA VI and the last two major releases cost, and how much revenue they’ve earned as of August 2023.

YearTitleProduction Costs ($)Revenue ($)Copies Sold
2025 (est.)GTA VI$2B (rumored)N/AN/A
2013GTA V $265M$7.7B185M
2008GTA IV$100M$2B25M

In 2008, GTA IV cost around $100 million—already a budget that rivalled big Hollywood releases. However with 25 million copies sold, the game earned nearly $2 billion—a five-fold return on its production cost.

Five years later, GTA V (2013) cost more than $200 million to make—twice GTA IV’s budget. A decade after its release, GTA V has generated close to $8 billion, with hundreds of millions in annual revenue from subscriptions and in-game purchases—a model that its successor is sure to follow.

In fact, subscription fees and in-game purchases represented 78% of Take-Two Interactive’s (parent of GTA developer Rockstar Games) revenues in 2023.

Analysts estimate the to-be-released GTA VI’s costs at $2 billion, including marketing and other expenses. A massive open-world (set in the Miami-inspired “Vice City”), cutting edge graphics, and a reportedly brand-new game engine are all reasons for the game’s outsized budget.

For comparison, the current most expensive games to have been made include Red Dead Redemption 2 (also by Rockstar) and Star Citizen, both reportedly with a $500 million budget.

Meanwhile, Take-Two Interactive shares are up more than 50% for the year.

Continue Reading
MSCI Direct Indexing

Subscribe

Popular