Are These The Best Esports Stocks To Buy Right Now?
Even as Big Tech is set to report earnings this week, esports stocks could be worth watching in the stock market. This would be the case as the gaming industry continues to gain momentum. For one thing, the coronavirus pandemic would be a key factor to consider here. After all, when consumers are staying home, video games offer a pandemic-proof means of entertainment. Another section of the industry would be esports, which is short for electronic sports. As the name suggests, this involves competitive gaming tournaments, which have grown in scale and popularity over the past decade. Could we be looking at another up-and-coming market in the entertainment space now?
If anything, we could refer to consumer spending trends in gaming, to begin with. Namely, this would indicate the potential addressable market and interest in gaming as a means of entertainment. According to market research firm NPD Group, consumers spent about $14 billion on video games in the second quarter of 2021. With that in mind, some of the biggest names in gaming are also involved in the esports industry now.
Major industry titans such as Activision Blizzard (NASDAQ: ATVI) and Sea Limited (NYSE: SE) can do so via their competitive online gaming offerings. For Activision, its free-to-play Call of Duty: Warzone title is the focus of major league tournaments. The likes of which offer prize pools of up to $500,000. Elsewhere, Sea Limited’s digital entertainment segment saw sales surge by over 117% year-over-year in its latest quarter fiscal. By and large, the general adoption of esports and gaming continues to grow. Because of this, some would argue that the esports industry has room to run, given the market size for conventional competitive sports. With all that said, here are three to consider in the stock market today.
Top Esports Stocks To Buy [Or Sell] This Week
- Esports Entertainment Group Inc. (NASDAQ: GMBL)
- Corsair Gaming Inc. (NASDAQ: CRSR)
- Skillz Inc. (NYSE: SKLZ)
For starters, we will be taking a look at Esports Entertainment Group (EEG). In brief, EEG is a full-stack esports and online gambling company. Through its online gambling portfolio, the company allows esports fans to make wagers on their favorite esports players. Essentially, this would make GMBL stock a viable play on the esports industry. In terms of year-to-date gains, the company’s shares are already up by over 38%. The real question now is, can GMBL stock continue to gain?
While that remains to be seen, EEG does boast significant partnerships with both esports and conventional sports organizations. Regarding the latter, most would be familiar with the NFL, NHL, NBA, and FIFA. Aside from that, the company also operates via iGaming, casinos, and internet cafes. Overall, this would see EEG’s portfolio span the full spectrum of esports and gaming today. Despite all of this, the company does not seem to be slowing down anytime soon. As of earlier this month, EEG is now working with the Hall of Fame Resort and Entertainment Company (NASDAQ: HOFV). Through this collaboration, EEG is bringing esports offerings to HOFV’s Hall of Fame Village.
If that wasn’t enough, the company also recently acquired Bethard, a fast-growing sports betting operator. Thanks to Bethard’s current customer base, EEG now holds Swedish and Spanish gaming licenses. The $19.5 million transaction would serve to significantly expand EEG’s addressable markets. Given all of this, would you consider GMBL stock a top esports stock to watch now?
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Corsair Gaming Inc.
Another name to consider in the industry now would be Corsair Gaming. In general, the California-based company provides consumers and professionals alike with gaming hardware. This includes computer peripherals, PC components, and premium streaming equipment to name a few. Additionally, Corsair also markets premium studio equipment, custom-designed controllers for competitive gamers, and custom gaming PC building services. In theory, all this would position Corsair to benefit from esports and gaming industry tailwinds. As such, could CRSR stock be worth keeping an eye on now?
Even now, it seems like the company continues to ride the wave of interest in video games. In its latest quarter fiscal posted back in April, Corsair saw green across the board. This is evident as it raked in total revenue of $529.4 million for the quarter, a 71% year-over-year surge. Moreover, it also posted massive year-over-year surges of 3,739% in net income and 4,600% in earnings per share. If anything, all of this could go to show that Corsair’s products are in demand now, more than ever.
On the operational front, the company remains hard at work as well. Earlier this month, Corsair launched a new series of streaming hardware via its Elgato brand. This includes a premium webcam, microphone interfaces, and a digital audio mixer. According to the company, the “Facecam” is a cutting-edge entry into the world of professional-grade webcams. Given the growing popularity of live streaming platforms across the globe now, this would be a strategic play by Corsair. All things considered, will you be adding CRSR stock to your radar?
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Following that, we have Skillz. For the most part, Skillz operates via an online mobile multiplayer video game competition platform. The company’s platform is seamlessly integrated into several iOS and Android games. Through this platform, Skillz facilitates competitions between mobile gamers across the globe. While most would associate esports with large computer setups, the mobile gaming scene is on the rise as well. With Skillz being a major player in this segment of the esports market, SKLZ stock could be worth watching as well.
Now, the company is not sitting idly by amid the current gaming boom. Just last month, Skillz acquired Aarki, a leading tech-driven marketing platform, via a $150 million cash and stock transaction. In detail, Aarki operates an upcoming global demand-side platform that primarily caters to the mobile gaming community. By Aarki’s estimates, it engages in over five trillion monthly advertising auctions and boasts a market reach of over 465 million monthly users. Safe to say, this acquisition serves to significantly bolster Skillz’s player acquisition capabilities in the long run.
In closing, CEO Andrew Paradise had this to say about the deal, “Aarki’s proven machine learning will pair with Skillz’s robust first-party data to create an unrivaled value proposition for game developers.” Adding to that, Paradise also believes that the new integrated ecosystem created will “unlock new points of connectivity” across Skillz’s customer base while delivering a “superior user experience”. With the company set to report its second-quarter fiscal next week, will you be keeping an eye on SKLZ stock?