It is without a doubt that esports has become one of the fastest growing industries, stemming from the gaming industry. We indicated in our previous post “Investing In The Esports Industry” that the esports industry has garnered about $1.5 billion in revenue with an audience of about 520 million, and top teams earning at least $15 million. Although the video game industry is riskier than the overall market, the gaming industry does look promising when it comes to the long-term outlook it has.
We did mention some names in there, but this time around we want to outline a number of stocks that are on the watch to make some more incredible numbers on the market. Let's take a walk, shall we?!
Photo credit: Video Game Chronicle
- Activision Blizzard: Activision Blizzard (ticker symbol: ATVI) may probably be one of the best companies pushing into the esports industry with much aggression, creating some of the largest esports communities with its original titles – Call of Duty, StarCraft and Overwatch. These games have garnered a large following and have been consistently ranked high on Amazon’s Twitch as some of the most watched games, with Activision Blizzard also pushing hard to secure professional sports leagues that could take esports to the next level. Microsoft reached out to them to make an offer of $68.7 billion, and if the regulators make this deal go through, then this will make them a long-term value in the game, while doing a greater good for industry at large.
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- Take-Two Interactive Software: Take-Two (ticker symbol: TTWO) has been most successful with its NBA 2K basketball series, and although the Grand Theft Auto series is not an esport, the online version of the GTA V game has generated a high player engagement – making it a potential for esports. Although they had a successful entry into the esports markets, there was a bit of a challenge with their growth trajectory during the pandemic, but they still have stayed winning with their ability to influence long playability. Their market cap as at July 2022 was $20.3 billion, making it a stock to watch as it continues to grow its audience speedily.
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- Tencent Holdings: Tencent Holdings (ticker symbol: TCEHY) is a Chinese tech and media giant, with a significant amount of exposure in gaming and esports. With its hit titles Honor of Kings and League of Legends the company shows its status as the media giant giving exposure to the growth of video games and esports. It also uses its social media platform WeChat to distribute content and sell advertising opportunities. Despite the regulatory tensions between the US and China, the company still has a potential to tap into, as it still is a leader in tech and entertainment, with its market cap as at last year standing at an incredible $426.8 billion.
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- Electronic Arts: Electronic Arts (ticker symbol: EA) is listed among the companies hosting some of the largest esports tournaments, especially for its franchises FIFA, Madden, and Apex Legends. With incredible percentages in viewership for the Madden NFL Esports as a result of their partnering with the National Football League – 400% year over year –, and a market cap of $34.7 billion, and probable expansions in the monetization window as a result of the Apex Legends Mobile, EA is surely a name to watch closely in the esports stocks markets. Also with its acquisition of Glu Mobile as part of its focus on mobile esports through games like Design Home and Diner Dash, there is another aspect of in-game spending and engagement EA will be tapping into as well.
Photo credit: Gadgets 360
- Zynga Inc.: Zynga (ticker symbol: ZNGA), is a leader in mobile video game development, with a specialization in social games such as FarmVille, CSR Racing, Harry Potter: Puzzles & Spells and Golf Rival, with sights set on bigger franchises and player engagement. Zynga intends transitioning slowly into the live events and professional as this is part of the company’s focus, and a good way to win over esports audiences. With a market cap of about $9.3 billion as of February, 2023, Zynga’s value is showing that it is on a rise and definitely a market to tap into as an investor.
It is indeed evident that this is an arena to have meaningful investments made as long as you are equipped with enough information on market caps and prefer the stocks’ price targets. More to be covered? You bet we will do so!
Esports has helped create jobs for lots of people. Interested in knowing about the business side of esports? Listen to the Gamers Change Lives Podcast! We get experienced guests from all around the world featuring.
Written by Jeffrey Osei-Agyeman
