Personal Finance

Here's How Turtle Beach Stock Rose 33.8% Last Month

Gamer sitting on a couch, wearing a headset and holding a gaming console controller.

What happened

Shares of Turtle Beach (NASDAQ: HEAR) gained 33.8% in July, according to data from S&P Global Market Intelligence . The maker of gaming headsets and other digital audio solutions is, in fact, the best-performing tech stock on the market in 2018 with a 1,615% return so far. And it's all thanks to the rise of so-called "battle royale" video games, where a good headset is an important part of the gaming experience.

So what

To be clear, Turtle Beach didn't have much news to share in July. The company did release new lines of gaming-console headsets, and key title Fortnite Battle Royale published a new "season" to keep gamers interested. But neither of these events made much of a difference to Turtle Beach's stock chart. Takeover chatter that painted Microsoft (NASDAQ: MSFT) as a potential suitor triggered a quick 4% rise near the end of the month, but even that spike was largely lost in the general uptrend.

Instead, the stock simply continued to rise on the considerable market momentum built up over the last few months.

Gamer sitting on a couch, wearing a headset and holding a gaming console controller.

Image source: Getty Images.

Now what

I can't help but wonder what happens to Turtle Beach when the gaming market takes another turn and forgets about the headset-equipped battle royale craze. I hope that the audio expert's management has the common sense to see this inevitable downturn coming, and expand the company into other markets while business is good.

The momentum might keep carrying Turtle Beach investors higher for a few more months, starting with Monday's second-quarter earnings report. But the stock is resting on the popularity of a very specific type of game, in an industry known to discard the latest trend in a hurry. I'm not going anywhere near Turtle Beach's stock until it finds another core market to slide into when battle royale games become old hat.

10 stocks we like better than Turtle Beach

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Turtle Beach wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 4, 2018

Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MSFT HEAR

Other Topics

Stocks

Latest Personal Finance Videos

    #TradeTalks: A Holistic Financial Picture to Give a True Indicator of your Financial Health

    Harvest Founder Nami Baral joins Jill Malandrino on Nasdaq #TradeTalks to discuss the Harvest PRO Index, holistic financial picture to give a true indicator of your financial health, not just a credit score.

    Oct 9, 2020

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More