What’s the best place for esports investors to put their money? The largest stocks by market cap could be a starting point.
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.
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.
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.
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.
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.
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Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.