- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
![Linius Technologies Limited](https://investingnews.com/media-library/linius-technologies-limited.png?id=51215379&width=1200&height=800)
Appendix 4E - Preliminary Final Report 30 June 2024
Linius Technologies Limited (ASX:LNU) (Company or Linius) has released its Appendix 4E Preliminary Final Report.
Reporting period
Report for the current period is for the year ended 30 June 2024.
Prior corresponding period information is for the year ended 30 June 2023.
Results for announcement to the market
Dividends
No dividends were paid or declared during the financial period and it is not proposed to pay dividends.
No dividends have previously been declared or paid in prior financial periods and there are no dividend reinvestment plans in place.
Details of entities over which control has been gained during the period
None.
Details of entities over which control has been lost during the period
None.
Click here for the full ASX Release
This article includes content from Linius Technologies, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Linius Technologies Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Linius Technologies
Investor Insight
For investors eyeing opportunities in the technology sector, Linius Technologies presents a compelling proposition. The company's value is rooted in several key factors: a patented, scalable technology; SaaS business model with predictable revenue streams and high potential for scalability; a growing market opportunity; and strategic industry partnerships.
Overview
In the rapidly evolving world of digital content, one company is making waves by revolutionizing how we interact with video, particularly in the sports industry. Linius Technologies (ASX:LNU), a cutting-edge B2B SaaS provider, is leveraging the power of data, artificial intelligence and machine learning to transform the video content landscape.
Linius stands at the forefront of video content innovation, offering a unique platform that empowers users to search, curate and personalise video content with unprecedented ease and efficiency. By processing Virtualized Video as simply and efficiently as data, Linius has developed a solution that not only enhances user engagement but also opens up new avenues for content monetization.
The company's flagship product, Linius Whizzard, is a testament to their commitment to pushing the boundaries of what's possible in video technology. This platform offers a suite of tools designed to transform static video content into dynamic, interactive experiences that cater to the individual preferences of viewers.
Company Highlights
- Linius Technologies is an Australia-based, cutting-edge B2B SaaS provider leveraging the power of data, AI and machine learning to transform the video content landscape.
- The company’s key technology, the Linius Video Virtualisation EngineTM, underlies their suite of products designed to transform static video content into dynamic, interactive experiences that cater to the individual preferences of viewers.
- The company has strategically focused its efforts on the sports industry, allowed it to establish a strong foothold among major leagues, federations, rights holders and broadcasters.
- Linius is led by a management team with a successful track record in the technology, media and entertainment and financial services industries.
Key Technology: Linius Whizzard
At the heart of Linius' offerings is the Linius Whizzard platform. This innovative solution is designed to unlock the full potential of video content through a range of specialised features:
Whizzard Highlights: Automates the creation of highlight packages, saving time and resources for content creators.
Whizzard Captivate: Enables the creation of personalised video streams, enhancing viewer engagement.
Whizzard Flick: Facilitates the production of ‘snackable’ video formats, catering to the growing demand for short-form content.The versatility of the Whizzard platform extends beyond sports, offering potential applications for broadcasters and media companies across various industries. Its capabilities for video search, curation and publication provide a comprehensive solution for organizations looking to maximise the value of their video assets.
Scoring Big in the Sports Industry
While Linius' solutions have broad applications across various sectors, the company has strategically focused its efforts on the sports industry. This approach has allowed Linius to establish a strong foothold among major leagues, federations, rights holders and broadcasters.
The sports sector presents a unique opportunity for video content optimization. With millions of passionate fans hungry for content, sports organizations are constantly seeking ways to enhance engagement and maximise the value of their video assets. Linius provides the tools to do just that, offering tailored solutions that address the specific needs of sports entities looking to elevate their content strategy.
To illustrate the practical applications of Linius' technology in sports, let's look at a couple of real-world examples:
IMG Partnership: IMG, a global leader in sports, events and media, selected Linius Whizzard to power its IMG Video Archive service. This partnership allows IMG to offer advanced video functionalities to their clients, enabling them to search, edit and distribute video content more efficiently than ever before.
US College Sports Market Entry: Linius has made significant inroads into the US sports market through deals with the Lone Star Conference and the Peach Belt Conference. These agreements demonstrate the scalability of Linius' solutions and mark a critical step in their international expansion strategy.
Management Team
James Brennan - CEO
CEO James Brennan is a dynamic leader with 20 years' experience in developing products and growing enterprise software and SaaS businesses. He has deep expertise in video, unified communications and educational technology with an outstanding track record of unlocking the latent potential of products and businesses. Brennan led transformation and growth at global companies including Integrated Research (ASX:IRI), Kaltura, BlueJeans Network and Polycom. He has a unique blend of sales, marketing, product management, and finance experience and is known for his commitment to building great teams and culture
Gerard Bongiorno - Chairman
Gerard Bongiorno is principal and co-CEO of Sapient Capital Partners, a merchant banking operation, and has over 25 years of professional experience in capital raisings and corporate advisory. Some of Bongiorno’s extensive experience include his roles in Challenger Limited (ASX:CGF), a diversified financial services firm, Village Roadshow and KPMG Corporate Finance, and his ongoing work as CEO of Sapient, raising capital both in Australia and internationally.
John Wallace - Director
US-based John Wallace has over 30 years of experience in tier 1 video and media organisations, across operations and sales, with an extensive understanding and experience in the technology, television and broadcasting industries. He most recently served as president & chief executive officer of Deluxe Entertainment Services, the media & entertainment Industry’s century-old post production and video distribution services company, and is active in the start-up investment community.
Barry McNeil - Director
Barry McNeil has over 25 years of experience in sports management and sports technology. He has led multiple sport-tech companies through rapid growth phases as CEO at Catapult Sports (ASX:CAT) and Prozone, which was acquired by StatsPerform in 2015. Currently, McNeill is founder & CEO at Bloom Sports Partners, a transformational sports advisory firm, helping sports leagues and growth-focused ownership groups find competitive advantage and sustained success.
Robert Scott - Advisory Board Member
A 30-year technology industry veteran and start-up specialist, US-based Robert Scott has an established reputation amongst industry insiders as a competitive turn-around agent, having led seven start-ups, two restarts and one internally incubated venture to successful outcomes. Currently, Scott is CEO of Cygilant, a leader in cybersecurity-as-a-service. He joined the company in 2018 and has since repositioned the company, launched a SOC-as-a-Service centre of excellence in Belfast, and implemented a best-of-breed technology strategy signing partnerships with Exclusive Networks, LogPoint and AT&T Cybersecurity.
David Butorac - Advisory Board Member
Over his 35-year career, Dubai-based David Butorac has worked in senior management and executive roles for some of the world’s leading media companies. His experience includes stints as CEO of multi-channel pay TV platform OSN (the MENA region’s premier pay TV platform), managing director of WIN Corporation, president (platforms) of the Star TV Network, group chief operating officer at Malaysia’s Astro, and head of operations for Sky UK. Butorac was named Media and Marketing Business Leader of the Year at the 2012 and 2015 Gulf Business Industry Awards and TMT Finance CEO of the Year (MENA) in 2015.
David Markus - Advisory Board Member
David Markus is a tech entrepreneur with a passion for innovation and value creation. After a career in IT management in Australia and England, he started an IT services company in Melbourne in 2002 that grew rapidly to be listed multiple times in fast-growth lists while winning awards for customer service. Having sold his company in 2019, his focus now is on helping others to scale. As a graduate of the AICD, he brings an appreciation of governance and customer focus to support the rapid deployment of technology in upscaling sales while delighting customers.
How to Invest in Esports
What’s the story behind esports, and why should market participants should consider investing?
Esports — or electronic sports — is competitive gaming. Just like traditional sports, some games are one-on-one, while others are team-based; however, these matches are played using computers or game consoles.
Esports fans can tune into these competitive events via a variety of streaming services such as the game-streaming service Twitch, which has seen a large jump in viewers and streamers since the COVID-19 pandemic. There were 2.44 million average concurrent viewers in May 2023 compared to 1.26 million in May 2019, and 6.82 million streamers in May 2023 compared to 3.93 million in May 2019.
Viewers also turn up in droves to watch live esports programming — prior to the pandemic, major arenas around the world sold out for live esports events, and new purpose-built venues for esports competitions were sprouting up. All these major revenue generators were mostly moved online during the pandemic, but live esports tournaments continue to return in 2023. Meanwhile, the industry is witnessing the dawn of hybrid esports events.
Given this enthusiasm, many investors are looking for ways to get involved in esports. While the space is just opening up, there are already diverse methods to get in. Here’s a look at stocks and exchange-traded funds (ETFs), two of the simplest ways to potentially make money in this exciting market.
How to invest in esports stocks?
The first place to start when investing in esports is with publicly traded stocks. The esports industry already includes large players such as Amazon (NASDAQ:AMZN), which burst onto the gaming scene when it acquired Twitch back in 2014 for US$970 million.
Although a company like Amazon does not offer pure-play esports exposure, it does provide stability. Major companies like this could be a good investment for those who are new to the esports space and are looking for a stable way to get access to the growing world of competitive video games.
Others may prefer investing in esports on a smaller scale, and there are a number of options to check out — for example, online mobile multiplayer video game competition platform Skillz (NYSE:SKLZ) and esports online and live events creator Allied Gaming and Entertainment (NASDAQ:AGAE).
As in any market, earlier-stage esports stocks generally come with increased volatility. But that can also bring the potential for major investment returns for those who get in on the ground floor. It’s up to individual investors to gauge what investment opportunities they are comfortable taking advantage of.
How to invest in esports-related stocks?
While esports stocks are an option for investors, it’s important to remember the scale of the market.
To put the wide reach of the esports gaming industry in context, total prize money claimed by teams competing at tournaments in esports arenas topped US$232 million in 2022.
In 2020, COVID-19 lockdowns impacted live events, so prize money from esports tournaments totaled about half that much, coming in at US$127.5 million. But esports prize money rebounded in 2021 to reach US$251 million.
The top games in terms of prize money awarded in 2022 were: Dota 2, Arena of Valor, PlayerUnknown's Battlegrounds Mobile, Fortnite and Counter-Strike: Global Offensive. 2022’s top esports league team by prize amount was Tundra Esports, a UK-based professional gaming organization that won US$9.08 million in prize money for the year. The majority of that came from the group's Dota 2 team, which took home US$8.52 million when it won the game's largest annual tournament, the International.
The reach of the esports industry is vast, with a wide variety of games, as well as varying computer and console requirements. Essentially, those willing to look beyond the immediate esports industry will see that there are many opportunities for companies that develop and sell products related to gaming.
One example is NVIDIA (NASDAQ:NVDA), which makes computer chips that are considered “the gold standard in gaming.” The multinational company is a behemoth in the gaming tech market, with its gaming vertical generating US$9.07 billion in revenue for the company in 2022 — representing more than one-third of its total revenue for the year.
There’s also hardware to consider, including items like headsets, mice, gaming keyboards and consoles. For that reason, companies like Microsoft (NASDAQ:MSFT) and Logitech International (NASDAQ:LOGI) could also be opportunities for investors to profit from the growing popularity of esports.
Additionally, as the competitive video gaming industry continues to grow and be taken more seriously, sponsorships and esports betting are entering the space more rapidly. In fact, it's been forecast that the esports betting industry will see revenue of US$24.19 billion in 2028 — up from the US$11.2 billion made in 2022. One company operating in this burgeoning space is FansUnite (TSX:FANS,OTCQX:FUNFF), a company that provides white label esports betting platforms.
How to invest in esports ETFs?
Since esports is still somewhat in its infancy, there is only one pure-play esports ETF for investors: the Roundhill BITKRAFT Esports & Digital Entertainment ETF (ARCA:NERD).
Although they're not pure-play esports ETFs, the following funds also offer investors exposure to the esports market: the Video Game Tech ETF (NYSE:GAMR), the VanEck Vectors Video Gaming and Esports ETF (NASDAQ:ESPO) and the Global X Video Games & Esports ETF (NASDAQ:HERO).
This is an updated version of an article first published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
4 Australian Esports Stocks
With major esports tournaments getting sponsorships from multinational companies, including Disney (NYSE:DIS), Intel (NASDAQ:INTC) and Coca-Cola (NYSE:KO), the esports market and gaming industry continue to gain traction worldwide.
Esports Earnings notes that prize money worth over US$955 million has been awarded in the esports industry over two decades, based on available public records. The largest prize pool was worth more than US$34.33 million and was won in 2019 by the Dota 2 team OG at The International 8, the top Dota 2 tournament.
This year, Overwatch League has an impressive US$4.21 million in its prize pool. Overwatch League is Activision Blizzard’s (NASDAQ:ATVI) official esports league for its hit first-person shooter game Overwatch, and now its sequel Overwatch 2.
In Australia, a recent report from PwC shows that the country’s interactive games and esports market was worth AU$4.92 billion in 2021, and is expected to grow at a 8.2 percent compound annual growth rate to 2026. The increase is expected to be driven by greater uptake in app-based games and esports.
Below the Investing News Network lists four Australian esports stocks with market caps between AU$10 million and AU$100 million. Market cap and share price data was accurate on TradingView’s stock screener as of October 20, 2022.
This is an updated version of an article first published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Marlee John, currently hold no direct investment interest in any company mentioned in this article.
Canadian Esports Stocks: 3 Biggest Companies in 2022
Canada’s role in esports is on the rise. It's home to 900 studios employing 28,000 game developers, and the gaming sector contributed C$5.5 billion to the country's gross domestic product in 2021.
The nation hosts three important arenas in the worldwide esports circuit, with OverActive Media (TSXV:OAM,OTCQB:OAMCF) planning to open a fourth 7,200 seat arena in Toronto by 2025.
Notably, Canada’s esports industry is attracting government funding, with the province of Ontario investing C$1 million in a post-secondary scholarship program aimed at supporting innovation in this growing segment.
In a gaming report, Newzoo states that the esports market is “massive and innovative, and it’s only due to grow and innovate even further.” Its analysis shows gaming revenues worldwide could surpass US$222.6 billion by 2024.
Esports investment is growing as well, spurred on by the diversification of revenue in the gaming sector — add-ons, expansions, in-game purchases and monthly subscriptions have all created new revenue streams. The rise of live-streaming games and league tournaments are also key factors driving esports market growth.
While the US and Asian esports industries are among the largest worldwide, the impact of Canadian esports stocks and the country’s esports industry are far from insignificant.
“The Canadian capital markets have played a fundamental role in contributing to the global esports boom,” according to Evan Kubes, president and co-founder of MKM Group. “Similar to what happened in cannabis and blockchain, many esports companies — both internationally and domestically — are taking advantage of the CSE and TSXV, which afford easy accessibility to the public markets.”
Here the Investing News Network looks at the three top Canadian esports stocks based on market cap. The list below was generated using TradingView’s stock screener on August 30, 2022.
1. Enthusiast Gaming Holdings (TSX:EGLX)
Market cap: C$260.68 million; current share price: C$1.73
First on this list of top Canadian esports stocks is Enthusiast Gaming, a digital media company that is focused on building the largest gaming media platform. While the US is its biggest audience and revenue source, Enthusiast Gaming reaches more than 300 million gamers and esports fans on a monthly basis through its gaming communities across YouTube, as well as brands and gaming websites.
The company’s Q2 2022 revenue came in at C$51.1 million, up by 38 percent from the same period in 2021. Enthusiast Gaming had 258,000 subscribers as of the end of June 2022.
2. East Side Games Group (TSX:EAGR)
Market cap: C$170.41 million; current share price: C$2.09
The next top Canadian esports stock is East Side Games Group, a free-to-play mobile game group whose proprietary Game Kit software platform allows creators to deliver engaging mobile gaming experiences.
The company has a large portfolio of original and licensed intellectual property mobile games, including The Office: Somehow We Manage, RuPaul's Drag Race Superstar, Bud Farm: Idle Tycoon, Cheech & Chong Bud Farm, It's Always Sunny: The Gang Goes Mobile and Trailer Park Boys: Greasy Money.
East Side Games reported US$29.7 million in Q2 2022 revenues, up 32 percent over its Q2 2021 numbers. In May, the esports firm's Dragon Up mobile game became available to play exclusively on Netflix (NASDAQ:NFLX).
3. GameSquare Esports (CSE:GSQ)
Market cap: C$39.1 million; current share price: C$0.16
Closing out this list of top Canadian esports stocks is GameSquare Esports, an international gaming and esports company involved in acquisitions in the sports and entertainment sectors. The company has built an asset portfolio that includes Code Red Esports, an esports talent agency serving the UK; GCN, a digital media company focused on gaming and esports audiences in Los Angeles; NextGen Tech (doing business as Complexity Gaming), a leading esports organization operating in the US; Swingman (doing business as Cut+Sew and Zoned), a gaming and lifestyle marketing agency based in Los Angeles; and Fourth Frame Studios, a multidisciplinary creative production studio.
Gamesquare reported Q2 2022 revenues of US$6.7 million, up 30 percent over the previous quarter. In August, the company increased its 2022 revenue guidance by 20 percent to a range of US$27.5 million to US$30 million.
This is an updated version of an article first published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
4 Esports Facts Investors Should Know
Gaming has become a central part of life for people across the world, and in recent years the adjacent esports sector has caught the attention of investors interested in thetech space.
But esports is still a new market, and if you're new it’s good to start with the basics. Let’s take a look at four facts on how esports began, the industry’s rise in popularity and, of course, where this exciting scene is headed.
1. The esports market has major growth prospects
Let’s start by clearing up any confusion the term “esports” may create. Although it has the word "sports" in it, esports is actually very different from traditional sports.
Instead, esports — or electronic sports — involves competitive gaming with computers or consoles, and encompasses a wide variety of games. Individual players or teams compete until a winner is determined.
While gamers can play competitive multiplayer games at home, or go to local stadiums, esports on the big stage have the potential for major rewards. Professional gamer and Dota 2 competitor Johan “N0tail” Sundstein holds the record for the highest earnings of all time, coming in at US$7.2 million as of 2022.
While that might sound like a lot, we’re talking about an industry that’s forecast to grow by 21.9 percent between 2022 and 2030 to reach nearly US$12.5 billion. Clearly this rise didn’t come out of nowhere, so how did esports develop into a rapidly growing spectator event? Let’s take a look.
2. Esports has a surprisingly long history
While esports may only recently have attracted mainstream attention, the sector has been around longer than you might expect. Slowly but surely, the industry has been quietly building over the last 30 to 40 years.
Marching at pace with technology, gaming became more accessible and popular as computers grew increasingly affordable and commonplace in homes around the world.
Interestingly, the first esports event took place all the way back in 1972, with the first tournament happening in 1980. Other esports tournaments took place in the 1980s and 1990s, but it was the rise of the internet that truly led these competitions to take off. Internet integration into gaming consoles enabled players to form teams, communicate with one another and play against other people online.
Broadband internet became widely available in 2000, and with the creation of YouTube in 2005, people could watch their favorite creators play competitive multiplayer games. Amazon’s (NASDAQ:AMZN) Twitch started in 2011 and grew quickly. Unlike YouTube, it's a platform dedicated to streaming video games, and is used to broadcast esports tournaments, as well as gaming channels run by individuals.
Some of the top esports games are first-person shooters such as Overwatch and Counter Strike: Global Offensive, and multiplayer online battle arena games like Dota 2 and League of Legends. Also popular are fighting games like Street Fighter V and Super Smash Bros, and real-time strategy games such as StarCraft II; battle royale games such as Fortnite and PlayerUnknown’s Battlegrounds also have a broad following.
Enthusiasts can also watch esports players and teams compete for titles in major league gaming events. In 2019, Dota 2 team OG made history when it won the Dota 2 tournament The International — Dota 2’s Super Bowl — for the second year in a row. The professional esports players beat Team Liquid to take home US$15.6 million from the prize pool, which reached a record US$34 million. Over US$211 million in prize money was awarded in 2019.
In 2020, COVID-19 lockdown measures were a key driver behind explosive growth in revenue for the gaming industry, and in the esports market by extension. That growth continued into 2021, with Grand View Research estimating that global esports market revenues soared passed US$2 billion for the year.
3. Big league gaming may be the future of esports
While no one has a crystal ball, esports industry speculation shows potentially big possibilities.
"Millennials consider esports a professional career option, owing to the increasing popularity of gaming tournaments, one-to-one sponsorships, streaming revenues, and impressive international prize pools. Additionally, colleges and universities have started providing dedicated esports programs to develop skilled professionals," notes Grand View Research in its report.
Another place where esports may make moves is the Olympics. Though it might seem farfetched to include esports in the Olympics, an event that has long stood for world excellence in physical skill, stamina and exertion among professional athletes, esports is nonetheless being evaluated for inclusion.
The Paris 2024 Olympic organizers have decided to include esports versions of Olympic sports as a side event. Although postponed due to the ongoing pandemic, esports is already being included as a demonstration title at the 2022 Asian Games in Hangzhou in China. It was previously considered a medal event.
While such exposure could help boost esports, some have pointed out that esports doesn’t necessarily need the Olympic spotlight, and that it’s been growing rapidly without it. With or without the Olympics, we’ll likely see ever-increasing sponsorships, magazine covers with top gamers and more.
Beyond popular games, another core component of the esports industry is built on interactions between players and fans on platforms such as Twitch. There's money there for businesses that support those interactions.
From hardware like headsets that allow gamers to talk to one another, to esports betting services or venues that profit off of live gaming events, there are many ways to gain exposure to this industry.
4. Esports could present opportunities for investors
Whether you’re an investor or a speculator, there could be much to gain in the long and short term as the popularity of esports increases. These electronic sports already have a huge reach across verticals and countries around the globe, and it’s not only pro players participating — anyone can compete at local esports events, and there are even college and high school esports teams and clubs sprouting up.
It’s clear that esports and the gaming industry are growing by the year, bolstered by social media and interest in competitive gaming as a spectator sport in both professional tournaments and Twitch streams.
Of course, that doesn’t mean that anything remotely related to esports is going to be a good buy for investors — those interested in this growing space will have to make choices depending on their risk level and the research they do. For more insight into esports opportunities, check out these articles: Ways to Invest in Gaming, Top 3 NASDAQ Gaming Stocks, and Mobile Gaming Stocks: 10 Biggest Companies.
This is an updated version of an article originally published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Eports Stocks: 3 Biggest Companies in 2022
After a long time growing steadily on the sidelines, esports is coming into the limelight as a potential opportunity for tech-savvy investors. So what are some of the big esports stocks to watch?
As more institutional money enters the esports industry, stakeholders the world over are clamoring to claim their piece of the pie. Companies are focusing on diverse aspects of the sector — such as facilities for events and tournaments, merchandise, streaming platforms and advertising — meaning there are many ways to get involved.
Who could blame them? With esports revenue estimated to be worth US$2.8 billion by 2028, there’s a lot to go around. How can investors and speculators get in on the next big thing?
Let’s take a look at some of the major esports stocks to watch. The three publicly traded esports stocks listed below have the biggest market caps in the esports industry. They are listed in alphabetical order, and all data was retrieved using TradingView’s stock screener on August 1, 2022.
1. Activision Blizzard (NASDAQ:ATVI)
Market cap: US$62.61 billion
First on this list of large esports stocks is Activision Blizzard. This California-based interactive entertainment company has an impressive portfolio of popular games, including the ubiquitous and lucrative Candy Crush Saga, as well as World of Warcraft, Diablo, StarCraft, Overwatch, Call of Duty and many more well-known games.
The company’s platform has five operating units: Activision, Blizzard Entertainment, King Digital Entertainment, Major League Gaming and Activision Blizzard Studios. Both the Activision and Blizzard Entertainment departments create, publish and distribute video games, but they have different streams.
For instance, Activision works on games like Call of Duty, whereas Blizzard works on the likes of World of Warcraft and its related franchises. King Digital Entertainment is the department related to mobile games like Candy Crush Saga, and Major League Gaming works on community building and user experience. And finally, Activision Blizzard Studios is in charge of creating content for film and television.
The company covers a lot of ground and produces a huge number of video games that are played by both professional gamers on esports teams and casual gamers. It’s no wonder that this brand has gained a lot of recognition for being an industry standout and a video game stock with investing potential.
2. Electronic Arts (NASDAQ:EA)
Market cap: US$36.55 billion
Electronic Arts is one of the world’s leading esports companies. Its video game offerings cover many genres, from sports to action/adventure to role playing to family games. Among others, the company owns key major titles such as the The Sims, Madden NFL, FIFA, Battlefield, Need for Speed, Dragon Age and Plants vs. Zombies.
The California-headquartered company is also known for its competitive gaming series, which focuses on its signature FIFA and Madden NFL games. For FIFA players, the ultimate goal is make it to the company’s FIFA eWorld Cup, where the top 64 players are invited to compete.
FIFA 2023 will for the first time include women’s club teams. “The result is the most natural and realistic motion in football gaming, and when combined with the inclusion of both men’s and women’s World Cups, women’s club football, and cross-play features, will immerse players and football fans around the world for years to come,” said Nick Wlodyka, senior vice president and general manager of EA Sports FC.
3. Take-Two Interactive Software (NASDAQ:TTWO)
Market cap: US$20.66 billion
Take-Two Interactive Software is a leading interactive games developer and publisher with a number of well-known labels, such as Rockstar Games, 2K and Private Division, as well as Social Point, a leading developer of mobile games. Take-Two’s most popular games include Grand Theft Auto, NBA 2K, Hades and Red Dead Redemption.
The company’s products are designed for console systems, handheld gaming systems, personal computers, smartphones and tablets. Take-Two’s offerings are available globally through physical retail stores, digital download, online platforms and cloud streaming services.
Together with the National Basketball Association (NBA), Take-Two Interactive co-founded the NBA 2K League, a professional esports league that launched in 2018. The league features 23 six player teams that compete in five-on-five play in a mix of regular season games, tournaments and playoffs.
In May 2022, Take-Two completed its merger with interactive entertainment company Zynga. “We are thrilled to complete our combination with Zynga, which is a pivotal step to increase exponentially our Net Bookings from mobile, the fastest-growing segment in interactive entertainment, while also providing us with substantial cost synergies and revenue opportunities,” said Strauss Zelnick, chairman and CEO of Take-Two.
This is an updated version of an article first published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
Esports Investing: The Next Big Thing?
With tech giants like Facebook (NASDAQ:FB) and Netflix (NASDAQ:NFLX) suffering sizable losses in 2022, investors are looking at other places to put their money.
Could esports investing be the next big thing? Many insiders are pointing to esports as the sector to watch — but where is this interest coming from?
Read on for a brief look at the world of esports and why making an investment in this growing space could be worthwhile for those interested in the broader tech industry.
What investors should know about esports
The term “esports” is used to describe the competitive video gaming industry. Players compete against other individuals or teams in online matches, either from home or at esports tournaments.
These competitions already have a huge reach across verticals and countries around the globe. In cities there are local esports events for many different games, and for those who are keen, there is even the option to join esports leagues. Esports and the gaming industry are growing by the year, bolstered by social media, the rise of professional players gaming in esports arenas and interest in competitive gaming as a spectator sport.
While some wouldn’t call this a sport, it certainly is a spectator activity, with people tuning in from around the world to watch players compete in games such as Overwatch and League of Legends. In fact, the 2021 League of Legends World Championship had a peak viewership of 73 million.
The draw to compete is strong, with over US$217 million in prize pool money awarded across 4,419 esports tournaments last year. The top games in terms of prize pool money awarded were: Dota 2, Counter Strike: Global Offensive (CS:GO), PlayerUnkown’s Battlegrounds, Arena of Valor, Fortnite and League of Legends.
2021’s top esports team was Team Spirit, a Russian professional gaming organization established in 2015 — its members brought in more than US$18.79 million from 29 tournaments, although a staggering US$18.2 million was from taking first place at the International 2021, the top Dota 2 tournament.
How are video game fans tuning in? Largely via game-streaming services like Twitch. Always ahead of the curve, Amazon (NASDAQ:AMZN) bought Twitch in 2014, and the service has grown to reach 15 million daily visitors and 8.2 million unique streamers each month in 2021.
Why is esports investing the next big thing?
When considering the following that esports has generated, there are multiple investment opportunities available. From game companies and accessory manufacturers to events and betting companies, the possibilities are vast.
For example, investors could look at companies with ties to major games, such as Tencent Holdings (OTC Pink:TCEHY,HKEX:0700); it owns a 40 percent stake in Epic Games, the maker of smash-hit Fortnite, and also owns Riot Games, whose flagship product is League of Legends.
One of the most well-known esports companies in the game right now is Activision Blizzard (NASDAQ:ATVI), with a market cap of more than US$61 billion. Microsoft (NASDAQ:MSFT), as part of its goal to gain more market share in the global gaming market, made a bid to acquire Activision Blizzard in January 2022.
There are also diverse esports-related stocks to look at, such as NVIDIA (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), which both produce computer chips in high demand for the industry.
If a market participant decides not to invest in stocks, they could always turn their attention to esports exchange-traded funds (ETFs). The Video Game Tech ETF (NYSE:GAMR) is an option to consider.
In-game skins are another potential area for investors to look at, although they're not traded on the stock market. Skins allow customization for characters or weapons in games such as Dota 2 and CS:GO. These skins are bought and sold for real currency, and some are even worth thousands of dollars.
And of course, esports events can't be overlooked as a place to profit. In 2021, dozens of esports tournaments featuring games like Overwatch, CS:GO, Hearthstone, Dota 2 and StarCraft II drew millions of live viewers.
Even gambling has entered the esports space, with esports betting becoming a growing platform to make money — the total amount bet on esports competitions is expected to hit US$205 billion by 2027.
The esports industry is headed for growth
There are already a huge variety of ways for investors to jump into esports, and openings are only expected to grow — the opportunities are vast, and so are the investment products available.
No matter what your play is, this market is certainly one to watch, with revenue expected to grow by a compound annual growth rate of 21.3 percent to reach US$3.57 billion in 2027.
This is an updated version of an article originally published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
Latest News
Linius Technologies Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Latest Press Releases
Related News
TOP STOCKS
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.