Fortnite, League of Legends, Dota2 and Call of Duty. Big names. Big fun. Big bucks. Nobody could have missed the huge prize pools in esports. According to the top list over at Esports Earnings, the five biggest prize pools ever are between 18 and 34 million dollars. Fantastic!
What does this tell us? Esports is big business.
Over the past few years, the esports industry has exploded. According to a report by Goldman Sachs, the esports viewership will reach 276 million by 2022. Others expect the audience to grow to 560 million already by 2021.
Esports still struggles to get acknowledged as a “real” sport in many countries though, but that misses the point. What esports actually is, is less important. More and more investors across the globe acknowledge it as an investment opportunity.
Why invest in esports? It’s pretty obvious to us. It is a dynamic industry expected to surpass $20 billion by 2021. There is a feeling that “the party has just got started”. We see no slowdown in interest from the younger generation to get involved. And lastly – there are various ways to invest in this market – from hardware, through software to sponsorship and tournament organization.
Invest in esports
OK, enough – here’s a brief guide on how to invest in esports. Let’s have a look at some of the best ways to bet on the growth of this market.
Esports stocks and companies to invest in
Obviously, one of the best ways to invest in esports is to buy stocks in companies involved in the development of games and equipment.
Here are some ideas:
Esports software stocks worth considering
- Electronic Arts (Ticker: EA): FIFA, Madden NFL and Medal of Honor are some of the most popular games.
- Take-Two Interactive (Ticker: TTWO): Famous for NBA 2K, Bioshock, Grand Theft Auto and much more.
- Activision Blizzard (Ticker: ATVI): Major League Gaming, Overwatch League, World of Warcraft and StarCraft are some examples of hugely popular games from this company.
To get the latest software running smoothly there is a massive need for computing power. One of the most successful hardware manufacturers within gaming for the past 20 years or so is NVIDIA (NVDA), which is traded on the NASDAQ stock market. Their main product is state of the art GPUs that are used to quickly render computer graphics. Their main competitor AMD is also worth keeping an eye on.
Intel has been increasingly sponsoring esports events with their processors, RAM and SDD. Peripherals manufacturers Logitech and Corsair are other investment opportunities. Another idea is to invest in the Microsoft stock because of Xbox.
Invest in esports teams and tournaments
If you wish to invest in an esports team it’s probably easiest to buy stocks in a company that takes care of the investing. One such company is The Madison Square Garden Company who owns Counter Logic Gaming. ESEN eSports is a Swedish organizer of esports tournaments. Another hugely popular Swedish company is Dreamhack of MTG which started a project by enthusiasts. They can be found among good Swedish investment funds. ESL is another bet. They own the most popular channel on Twitch and cooperates closely with several game developers. From the UK we have Gfinity – an esports event organizer.
Buy stocks esports platform companies
Today, Twitch is the most popular platform for streaming esports. How to invest in Twitch? Buy Amazon stock! While Twitch is only a tiny share of Amazon’s massive income, it is expected to grow. YouTube with its YouTube Gaming is another bet. To buy stock in YouTube you need to purchase shares in Alphabet. If you fancy the Xbox alternative, you can invest in Microsoft and its Mixer platform.