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Gaming Software Stock Set to Explode on Record Bullish Options Activity

Author

Noah Zelvis
May 30, 2025

Hello and welcome to the Tech Stock Insider, the twice-weekly newsletter covering the biggest opportunities in the tech world.

Today, we’ll look into the latest tech news, highlight some recent movers, and investigate an under-the-radar tech stock with potential.

The key to a $1.3T opportunity

A new real estate trend called co-ownership is revolutionizing a $1.3T market. Leading it? Pacaso. Led by former Zillow execs, they already have $110M+ in gross profits with 41% growth last year. They even reserved the Nasdaq ticker PCSO. But the real opportunity’s now. Until 5/29, you can invest for just $2.80/share.

This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.

AI

Amazon Brings Times Journalism to Alexa in Strategic AI Deal 

Amazon (NASDAQ: AMZN) is expanding its AI footprint with a new licensing deal that brings content from The New York Times into its ecosystem. The agreement allows Amazon to feature summaries and short excerpts across products like Alexa, while also using the material to train its in-house AI models.

Instead of risking copyright disputes, Amazon is taking a partnership-first approach. The deal covers a wide range of Times assets, including NYT Cooking and The Athletic, suggesting a broader goal of integrating premium journalism into everyday user interactions.

With Alexa+ already infused with generative capabilities and Bedrock offering third-party model access, adding high-quality licensed data helps sharpen its competitive edge and reduce legal friction.

Many news outlets have gone the litigation route, but Amazon’s move shows a shift toward collaboration. It also provides a potential template for how Big Tech can navigate media rights while scaling AI products responsibly.

Embedding trusted content into voice assistants and AI tools adds both utility and credibility. As Amazon doubles down on consumer-facing applications, this deal helps solidify its AI ambitions while positioning the company as a more compliant and content-rich alternative to rivals.

Productivity Software

With $1B in Hand, Grammarly Looks Beyond Grammar and Into Enterprise AI

Grammarly is expanding its ambitions well beyond grammar-checking. The company has secured $1 billion in non-dilutive financing from General Catalyst to accelerate its AI roadmap and build what it calls a full-stack productivity platform.

This isn’t equity. It’s capital tied to revenue-based returns, giving Grammarly the ability to deploy the funds without giving up ownership. The money will be allocated toward sales, marketing, strategic acquisitions, and deeper product innovation. With over 40 million daily users, Grammarly is positioning itself as a hub for AI-driven communication tools.

For those tracking the rise of workplace AI, this move shows how fast the stakes are climbing. Grammarly is aiming to become an ecosystem. That shift mirrors broader market behavior, where AI-native platforms are attempting to displace incumbents by integrating third-party tools and expanding their functionality.

General Catalyst’s backing comes through its Customer Value Fund, which is structured around predictable returns on customer growth. This form of funding enables late-stage startups to extend their reach without resorting to traditional venture capital dilution or rushing into public markets.

Founded in 2009, Grammarly reportedly generates over $700 million in annual revenue and remains profitable. The company’s next phase includes expanding its platform, incorporating new tools, and potentially exploring new monetization avenues. While no IPO has been announced, the transformation is clearly underway.

Year-End Growth (Sponsored)

Q2 2025 is packed with stock opportunities, and a curated guide highlights seven standout picks to watch right now. 

These selections tap into fast-growing sectors and are backed by sharp, simplified analysis designed for smart decisions.

Each stock was chosen using data-first methods, not guesswork, to increase reliability.

The guide also outlines ways to align investments for stronger year-end gains. 

Consumer Tech

Alphabet Pushes Into Indian Hardware Market With Google Store Rollout

Alphabet (NASDAQ: GOOGL) is expanding its hardware strategy in India with the launch of direct online sales for Pixel phones, earbuds, and smartwatches through the official Google Store website. The move signals a clear shift from relying on third-party platforms like Flipkart.

Google is also preparing to open its first physical retail stores in India. These will mark the company's first brick-and-mortar locations outside the United States and are expected to mirror Apple's highly visible store rollout in major Indian cities.

Direct sales give Google more control over pricing and customer experience, especially in the premium smartphone segment, where Apple currently dominates. While iPhones account for more than half the market in this category, Google's Pixel brand holds only a small share.

The company has also started local manufacturing of Pixel devices in India, a step that supports government incentives and could help improve margins by reducing import costs.

Alphabet is betting on India's rapidly growing tech economy and its massive smartphone base of over 700 million users. Building out retail, production, and direct access gives Google a stronger foothold in a region where Android usage is already high, but hardware penetration remains low.

This marks a broader shift as Google positions itself to grow not just through services but through full hardware integration across key international markets.

Recent Tech Movers

Shift4Payments (NYSE: FOUR) is quietly disrupting the ~$100 billion mobile payment processing industry and is on pace to snag significant market share from leaders like Block (NYSE: XYZ). The mid-cap stock focuses its efforts on offering a wide suite of payment options to sellers, including contactless NFC transactions alongside the growing QR code payment sector, all of which contributed to its 15% year-over-year sales growth in 2025’s first quarter.  

Unity Software (NYSE: U) may be in for a major upward move if unusual options activity is any indicator - record call volume for the gaming stock saw 330,000 bullish options traded this week at a 10:1 call-to-put ratio. Options traders are targeting a 20%+ increase in Unity’s share price despite a slew of analyst downgrades from Barclays, Stifel, and Needham in recent weeks.  

NetApp (NASDAQ: NTAP) blew past earnings estimates this week, posting record revenue numbers on a wave of increased public cloud storage demand. Shares dipped slightly after the earnings beat after management offered cautiously optimistic forward guidance, but quickly gained back lost ground (but the stock’s momentum may be just beginning!).

Next-Gen Stocks (Sponsored)

The AI boom is evolving—and 9 overlooked companies are in prime position to lead the next wave.

These stocks aren’t about hype—they’re driven by revenue growth, government deals, and AI baked deep into their models.

The list includes a chip maker set to dominate U.S. production, a cloud firm riding regulatory tailwinds, and a data leader eyeing federal contracts. 

Each one was selected for long-term upside, not short-term noise.

Get the full report now while these names are still flying under the radar.

Don’t Overlook This Tech Stock

Garrett Motion (NASDAQ: GTX) may be one of the most objectively undervalued tech stocks we’ve looked at recently, trading at less than 1x sales and just 7.75x earnings at last count. The company is a quintessential “pick and shovel” stock in the green tech and sustainable driving sector, manufacturing automotive parts that reduce emissions and support zero-emission technologies, including alternative fuel engines and turbochargers for gasoline and diesel vehicles.

While pure-play EV companies like Tesla (NASDAQ: TSLA) are losing favor amid declining consumer interest and increased demand across gasoline-powered used car markets, Garrett Motion offers investors a bridge between immediate market realities and long-term sustainability goals.

Though Garrett Motion's stock recently dipped following an earnings report showing a 4% drop in quarterly sales, the company's annual sales have remained stable with healthy margins and free cash flow (and a 2.25% forward dividend yield doesn’t hurt, either).

Everything Else

  • Consumers are clamoring for extended-range hybrid electric automotive offerings as sustainability-focused buyers demand greater driving range than most EVs offer. 

  • “Vibe coding” is increasingly enabling guerrilla-style app development, posing a significant threat to existing SaaS competitors.  

  • Of course, increased reliance on AI to develop code also comes with cybersecurity risks - perhaps one of the reasons that Zscaler shares surged following a strong earnings report. 

  • Roblox is at the leading edge of the burgeoning “digital fruit economy” as its newest game offering bags massive new user numbers. 

  • Apple is facing increased analyst bearishness as a wave of downgrades shakes the stock’s longstanding foundation of institutional support.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.

Best Regards,
—Noah Zelvis
Tech Stock Insider