A new lawsuit has been filed against the developers of several popular video games. The lawsuit comes from a Maine mother who argues the games are knowingly made in such a way as to be addictive to children and entice them to spend money on in-game purchases. The lawsuit targets Minecraft owner Microsoft (MSFT), Roblox (RBLX), and Fortnite developer Epic Games.
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The lawsuit argues that the child of the Maine mother has suffered from symptoms similar to withdrawal. It stated that “Any attempt to remove (the child) from their games is met with severe withdrawal symptoms, including anger, and refusal to maintain proper hygiene or sleep.”
Roblox is especially worth noting as it has been the target of other recent lawsuits. However, these aren’t tied to addiction. Instead, the lawsuits argue the company doesn’t do enough to protect youth on its platform, making it a safe haven for child groomers.
Video Game Stock Movements Today
Microsoft stock was down 0.6% on Monday but was still up 22.81% year-to-date. The shares have also rallied 19.47% over the past 12 months.
Roblox stock was unfazed by the lawsuit, with the company’s shares up 1.44% today. This extended a 136.1% year-to-date rally and a 196.9% increase over the past 52 weeks.
Investors will note that Epic Games isn’t a publicly traded company. However, Tencent (TCEHY) holds a 40% stake in the Fortnite developer. TCEHY stock was up 0.73% as of this writing, and has risen 55.77% year-to-date and 65.43% over the past year.
MSFT vs. RBLX vs. TCEHY: Which Gaming Stock Do Analysts Prefer?
Turning to the TipRanks stock comparison tool, traders can see which video game stock analysts favor. Microsoft is analysts’ favorite with a Strong Buy rating and 21.71% upside, followed by Roblox with a Moderate Buy rating and 8.1% upside, and Tencent brings up the rear with a Moderate Buy rating and 7.2% downside.
