Which Esports Stock To Buy?
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As the popularity of esports continues to grow, investors are wondering which esports stock to buy. Here’s a look at a few of the options.
The 3 Stocks
The esports industry is still in its early stages, and it is growing rapidly. With so much potential for growth, it can be difficult to decide which esports stock to buy. However, there are a few that stand out above the rest. In this article, we will discuss the three top stocks to buy in the esports industry.
Activision Blizzard (ATVI)
Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. The company was founded in 2008 through the merger of Vivendi Games and Activision, and has since grown to become one of the largest video game publishers in the world. It is one of the “Big Three” game publishers, along with Sony Interactive Entertainment (SIE) and Microsoft (MSFT).
Activision Blizzard operates through three primary segments: Activision Publishing, Blizzard Entertainment, and King Digital Entertainment. Activision Publishing is the company’s largest segment and includes its flagship Call of Duty franchise, as well as other well-known franchises such as Crash Bandicoot, Candy Crush, Guitar Hero, and Skylanders. Blizzard Entertainment is the company’s second-largest segment and is responsible for some of the most popular PC games in history, including World of Warcraft, Diablo, StarCraft, and Overwatch. King Digital Entertainment is the company’s third-largest segment and is the maker of popular mobile games such as Candy Crush Saga and Farm Heroes Saga.
The company has a market capitalization of $67 billion as of May 2020.
Electronic Arts (EA)
Electronic Arts (EA) is a gaming giant and one of the top publishers in the industry. It owns some of the most popular franchises in gaming, such as FIFA, Madden NFL, Star Wars, and The Sims. EA also has a strong portfolio of mobile games.
Healthy growth in the esports industry is critical for EA’s long-term success. The company has made several smart investments in this space, including its partnership with ESPN to launch an esports tournament for its Madden NFL franchise. EA is also a founding partner of the Professional Esports Association (PEA), which is working to create a framework for how professional esports leagues should be run.
While EA is certainly not the only stock worth considering in the esports industry, it is one of the blue chip companies that investors can feel confident about betting on for the long haul.
Take-Two Interactive (TTWO)
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products through physical retail, digital download, online platforms, and cloud streaming services. It operates through three segments: Publishing Labels, Royalty-Based Licensing, and Other. The Publishing Labels segment develops and publishes action/adventure products under the Rockstar Games and 2K labels, including Red Dead Redemption 2, the Grand Theft Auto series, the NBA 2K series, BioShock,Borderlands, Carnival Games, and Sid Meier’s Civilization VI; and family entertainment products under the label Private Division that comprise Kerbal Space Program Enhanced Edition. This segment also develops products by third parties comprising Skullgirls Mobile under the label Lab Zero Games; Bully from Rockstar Leeds; Spec Ops: The Line from Yager Development GmbH;999 Games’ Wagamama High Spec; Nerve Software’s Doom & Doom II for cellular phones;Duke Nukem 3D: 20th Anniversary Edition World Tour from Gearbox Publishing; Flying Wild Hog’s Shadow Warrior last year edition from Devolver Digital’s publishing label; Kerbal Space Program enhanced edition published by Star Theory Games for consoles; additional titles licensed for console release will be published on behalf of certain licensors by Private Division or a co-publishing arrangement with another party through 2022; and new releases that were published on behalf of Take-Two include Ancestors: The Humankind Odyssey , Borderlands 3 ,Carnival Games VR , MLB Ballpark Empire , NBA 2K Playgrounds 2 ,NBA 2K Mobile Basketball , Sid Meier’s Civilization VI mobile version , WWE Supercard shooter game , WWE Supercard beat ’em up game . The Royalty-Based Licensing segment licenses over hundred patented technologies to third parties in the console gaming market place. The Other segment offers professional basketball simulations games under the NBA G League label in China ; provides professional wrestling games in Japan ; investment activities in desktop and mobile free – to – play games ; internet real estate management business with social media properties for gamers ’ enjoyment . Take – Two Interactive Software was founded in 1993 and is headquartered in New York City.(source: Nasdaq)
The Bottom Line
The bottom line is that there is no one “right” stock to buy when it comes to esports. However, if you’re looking for a solid investment in the industry, Razer Inc (RAZFF) and Allied Esports Entertainment Inc (AESE) are both good options to consider.