How to Buy Esports Stocks?

Esports stocks are becoming more and more popular, but how do you buy them? Here’s a quick guide on how to get started.

What are esports?

Esports are a form of competition using video games. They are usually organized into leagues or tournaments and can be played either in teams or individually. Esports often have large prize pools and attract a lot of viewers. Some popular esports games include League of Legends, Counter-Strike: Global Offensive, and Dota 2.

The global esports market

The global esports market was valued at US$815.3 million in 2018 and is expected to grow to US$1.79 billion by 2022, according to market intelligence firm Newzoo.

Of that, Asia-Pacific is expected to make up more than half of the global esports economy with US$693.7 million in 2019, followed by North America with US$345.8 million, and Europe, the Middle East, and Africa with US$174 million.

Meanwhile, China is expected to generate US$STRUCTURE Newzoo says that the total number of esports enthusiasts will reach 453.8 million people worldwide in 2019 while the total number of occasional viewers will hit 628.7 million people.

The most popular esports games

The most popular form of esports is multiplayer online battle arena (MOBA). In a MOBA, players work together as a team to destroy the enemy base. The two most popular MOBAs are League of Legends and Dota 2.

Another popular form of esports is first-person shooter (FPS). In an FPS, players compete against each other in a deathmatch. The two most popular FPS games are Counter-Strike: Global Offensive and Overwatch.

Other popular esports games include Rocket League, Hearthstone, and Starcraft II.

How to buy esports stocks?

Esports have been growing in popularity and more and more people are getting interested in investing in this industry. However, many people don’t know how to buy esports stocks. In this article, we will cover how to buy esports stocks and what you need to know before you invest.

Invest in an esports company

So you want to invest in esports? There are a few things you need to know before you jump into the fray.

For starters, it’s important to understand that the esports industry is still in its infancy. While there are a handful of publicly traded companies that have a direct connection to esports, the majority of the industry is made up of privately held companies.

That being said, there are a few ways to get exposure to the esports industry through publicly traded companies. The most direct way is to invest in an esports company. While there are only a handful of pure-play esports companies that are publicly traded, there are a number of non-endemic companies that have made significant investments in the space.

Another way to get exposure to esports is through video game publishers. While most publishers don’t have a dedicated esports focus, many have investing heavily in competitive gaming. And as the industry continues to grow, it’s likely that more publishers will get involved in esports.

Finally, you can also get exposure to the esports industry through companies that provide services to the space. This includes everything from broadcasters and event organizers to sponsors and advertisers.

While there are a number of ways to get exposure to eSports, it’s important to remember that the industry is still in its early stages. As such, any investment you make should be considered high risk. With that said, if you’re careful and do your homework, investing in eSports can be a rewarding experience.

Invest in a game publisher

The easiest way to invest in esports is to buy stock in a game publisher, such as Activision Blizzard (ATVI) or Electronic Arts (EA). These companies own some of the most popular competitive games, including “Overwatch,” “Call of Duty” and “FIFA.”

Activision Blizzard is the largest pure-play video game company in the world with a market capitalization of nearly $50 billion. The company owns some of the most popular esport franchises including “Overwatch,” “Call of Duty” and “Hearthstone.”

Electronic Arts is the second-largest video game company in the world with a market cap of $35 billion. The company owns popular competitive games such as “FIFA,” “Madden NFL” and “Battlefield.”

While these stocks will give you exposure to the esports industry, they are not pure-plays. That means that their stock price will be influenced by other factors such as the overall health of the video game industry and macroeconomic conditions.

Invest in a game developer

The easiest way to invest in esports is to buy stock in a game developer. These are the companies that create and operate the popular video games that serve as the foundation of professional competitive gaming. The two largest and most well-known game developers with significant esports operations are Riot Games and Activision Blizzard.

Riot Games is the developer of League of Legends, by far the most popular esports game in the world. The company operates an official professional league for the game, called the League of Legends Championship Series, or LCS, which is watched by millions of fans around the world.

Activision Blizzard owns several of the most popular esports games, including Overwatch, Hearthstone, and Call of Duty. The company also operates official professional leagues for these games, including the Overwatch League and Call of Duty World League. In addition, Activision Blizzard owns several major esports organizations, such as Team Envy and Los Angeles Valiant (Overwatch), OpTic Gaming and compLexity Gaming (Call of Duty), and Virtus.pro (various games).

The risks and rewards of investing in esports stocks

The risks

When it comes to stock investing, there are always risks involved. However, with esports stocks, there are a few unique risks to take into consideration. Here are a few of the risks associated with investing in esports stocks:

1. Company Risks
2. Industry Risks
3. Market Risks

1. Company Risks: When you invest in any company, you are taking on the risk that the company may not be successful or may not perform as well as expected. This is true for traditional companies as well as esports companies. When considering investing in an esports company, be sure to do your research and understand the company’s financials and business model.

2. Industry Risks: The esports industry is still in its infancy and thus carries with it some inherent risks. The industry is prone to rapidly changing trends and technologies which could lead to companies becoming quickly outdated. Additionally, the industry lacks standardization which could lead to inconsistent results for investors across different companies.

3. Market Risks: When you invest in any publicly traded asset, you are also subject to market risk. This means that the value of your investment can go up or down due to general market conditions. For example, if the overall stock market goes down, the value of your esports stock investment will likely go down as well.

The rewards

There are a few key reasons why investing in esports could be a wise move. For one, the industry is growing at a rapid pace. According to Newzoo, the global esports economy is expected to reach $696 million in 2017, up 41% from 2016. Furthermore, the total number of esports enthusiasts is expected to reach 385 million this year.

What’s more, brands are starting to take notice of the potential of esports. In 2016, brands invested $517 million in esports, up from $463 million in 2015. This figure is only expected to rise in the coming years as more brands look to tap into the lucrative esports market.

Finally, it’s worth noting that many of the world’s biggest companies are already involved in esports in some capacity. These include Coca-Cola, Intel, and Red Bull, to name just a few. So not only is the industry growing quickly, but it also has some major backers behind it.