What’s the best place for esports investors to put their money? INN has put together this list of three major esports stocks to invest in.
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 esports market 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.
Let’s take a look at some of the major esports stocks to watch. The three publicly traded esports stocks listed below all have market caps greater than US$10 billion and ties to video games, gaming or esports tournaments. They are listed in alphabetical order, and all data was current at the time of publication.
1. Activision Blizzard (NASDAQ:ATVI)
Market cap: US$70.68 billion; current share price: US$90.96
First on our 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 (which owes a lot of its popularity to social media buzz), as well as World of Warcraft, Diablo, StarCraft, the Overwatch League, 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$39.78 billion; current share price: US$138.32
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 California-headquartered company owns key major titles such as the The Sims, Madden NFL, FIFA, Battlefield, Need for Speed, Dragon Age and Plants vs. Zombies.
The 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.
3. Take-Two Interactive Software (NASDAQ:TTWO)
Market cap: US$19.32 billion, current share price: US$167.76
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, Max Payne, Midnight Club 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 plyer teams that compete in five-on-five play in a mix of regular season games, tournaments and playoffs.
Which large esports stock would make a good investment, and why? Tell us in the comments if and how you’d make the leap into esports stocks investing and the gaming industry.
This is an updated version of an article first published by the Investing News Network in 2019.
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Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.