Esports Stocks – Find the Best Esports Stocks to Invest in
Investing in esports stocks is one way to take financial advantage of the global success of competitive gaming. Over the past decade, esports brands like Twitch and ESL along with teams like Cloud9 and TSM have achieved multi-million-dollar valuations. In the case of Twitch, it achieved a multi-billion-dollar valuation.
The potential for growth in the esports industry means that the sector was a great choice for investors in 2020 and 2021 and could be the stock to invest in, once again, for 2022 and beyond. That said, we have to pay a little attention to the still ongoing effects of the Covid-19 pandemic and delays to recovery in 2022.
For instance, the valuations of esports teams plateaued in recent years as these teams were unable to compete in the massive on-location tournaments. These were driving huge revenues for teams, organisers, stadium-builders, sponsors, and game developers. In contrast, video game sales are expected to have increased by 20% in 2020, streaming is booming, and online esports and associated activities are where to pay attention amidst continuing global lockdowns.
Esports stocka are a hot commodity
Through 2021 the esports and gaming industry proved its resilience as people stayed home – and played. Though physical professional tournaments may continue to be impacted by Covid-19 in 2022, the interest in online esports, gaming, buying esports stocks, and betting on esports and gaming, is all growing. Going beyond 2021, the return to in-person tournaments has seen record breaking attendance in person and online.
Some esports companies and teams are publicly listed, allowing you to buy their shares so that you can help invest in their future, whilst earning a profit share as they grow. Some can even issue dividends, giving you a share in their success each year as they grow. Others are owned by larger publicly listed corporations which operate in others sectors too, by investing in the overall company you are investing in esports too.
Most gamers are probably more interested in playing games rather than watching esports stock prices. But if you are keen to put your gaming knowledge to good financial use, then figuring out how to buy stocks in esports could be a wise move.
Here is a quick guide to start you off in recognizing the best esports stocks, and a look at some of the most valuable esports stocks 2021 has to offer.
Esports Stocks – Top 10 Esports Stocks to Invest In
Below we’ve covered all of the basics that you need to know before jumping into investing in stocks. Once you’re all set-up though, which are the best esports stock to buy? Since this is a wide market there are a lot of different types of companies that stand out. These are some of the best esports stocks available at the moment:
1. Allied Esports Entertainment
Allied Esports is a name who have deeper reaching ties to the esports community than you’d probably expect. The organization is involved in all aspects of esports. They own a number of esports venues, including the HyperX Esports Arena, Allies Esports Trucks. Alongside studios, they own and operate. A number of esports studios to bolster casting and streams alongside organizing some tournaments.
Operating in the background of a lot of varied esports events is a good way to ensure the esports stock you’re invested in is balanced across the market. Allied operate both stadiums, tournaments, and broadcast facilities. In-person events, online only, and every type of game can be serviced by their offerings in esports. This makes it one of the esports stocks that crosses the entire industry.
In recent years Tencent has become a huge name in esports and some areas of gaming entirely. The company has been involved in the massive growth of mobile esports worldwide and general esports in Asia. This puts their games at the centre of the current esports world and biggest growth areas. This makes it a great pick for an esports stock and anyone looking to invest in esports.
Although, there are some things to bear in mind with Tencent. Buying stock in Chinese companies can be complicated at times and there have been accusations that Tencent is overvalued in recent months. Make sure you do your research, but Tencent remains one of the biggest and most profitable video game companies thanks to its involvement in esports.
3. Esports Entertainment Group
Esports entertainment group tie into a different area of competitive gaming. This is a company with wide reaching influence in the world of esports gambling and a great pick in esports betting stocks. Esports Entertainment Group are expanding quickly, with approval now granted for them to operate in Atlantic City. This opens up entire new horizons for the company.
Nvidia is an example of esports stocks that deals with more of the backend for esports, the tech that allows the games to play. They are one of many manufacturers of gaming gear that has become essential for high-level competitive play. If you’re a big believer in a particular brand or just the growth of PC based competitive gaming, then Nvidia is worth a look for an esports stock in 2022.
DraftKings are just about the only name in fantasy sports and esports. Their gaming offerings have expanded quite a bit recently alongside further reform to their licensing. This has made them a good pick for growth in esports gambling.
6. Super League Gaming
Super League Gaming is a wide reaching esports company that services the entire gaming community. They’re partnered up to show esports in movie theatres, run tournaments and servers, and even cloud based studios. Super also own technologies like Framerate, that handles high quality video clipping. Super League Gaming are a fast-growing esports company.
7. Leet Technology
Leet Technology is the company behind Matchroom and a smaller pick for esports stocks. This is software that aims to make it simple to set-up and host esports events and tournaments. If this software can deliver, then it could make it a breeze for community or local groups to set up and host events without a learning curve or stress for organization.
Luckbox is another gambling operator for esports, but one that operates in a more liberal environment. Rather than serving US areas with slowly changing legislation, Luckbox runs a bookmaker that’s available most places where betting is allowed. This has allowed them to make the most of the growth in esports betting in recent years and become a solid pick for esports betting stocks.
If you’re looking to invest in esports, then consider a company slightly out of the box. Gfinity is an esports media company that is public ally traded as an esports stock. Naturally a media company doesn’t quite have the same potential as an organizer of events or manufacturer of actual esports equipment. However, the lower market cap reflects this and Gfinity is still a decent position stock as esports grows more popular over coming years.
Astralis Group (ASTGRP) is the holding organization for various esports teams competing in CS:GO, League of Legends, Rainbow Six Siege and FIFA. The organization has a tradition within CS:GO as the most dominant team to ever grace the scene. Their LoL team is fully franchised within the LEC, and a staple part of the scene. As such, ASTGRP is a great stock for both fans and esports enthusiasts that want to commit to an organization that seems to be growing within the industry as of late.
Best Esports ETFs
Those are some of the top picks for individual esports stocks. However, if you’re looking to invest in the general area of esports rather than any specific companies, then ETFs might be for you. We’ve detailed how they specifically work below if you’re new to them, but these are the top esports ETFs at the moment.
There are a growing number of esports ETFs targeting millennial investors. These feature some riskier esports only stocks combined with more general gaming. There aren’t too many strictly limited to esports right now, but plenty have crossover with this world.
1. GLOBAL X
Global X contains up to 40 holdings across both esports and gaming. Often esports ETFs will contain larger cap esports stocks of specific developers that are more video games than strictly esports. However, this is necessary to keep the ETF properly balanced with variously sized companies. The Global X ETF has a good amount of esports in the mix and video game companies that rely heavily on esports.
2. VenEck Video Gaming and eSports etf
The VanEck ETF here combines some areas of esports with the wider video game market. This ETF covers companies related to game developed along with esports, and hardware that’s needed for the games to be played at all. This portfolio contains major developers like Activation Blizzard but also esports specific stocks.
3. HERU ETF
The HERU ETF covers a big spread of the gaming market. It’s only been in existence since Deecember 2020, so this isn’t the oldest one around the moment. However, it has some big pluses going for it. It runs at a expense ratio of only 0.5% which is pretty low for an ETF. The basket contains 40 holdings covering everything from video games to esports stocks.
4. NERD ETF
NERD ETF is an exchange-traded fund that specifically deals in esports and gaming stocks. Its basket, or portfolio, of stocks of publicly traded companies includes game publishers, streaming networks, esports team owners, tournament organisers, and hardware companies
Esports Stocks and Investing FAQ
What are esports stocks?
Esports stocks are shares that represent a part of a company. Each share means you own a portion of that company. You can profit from the company’s success through dividends paid or re-selling the shares at a greater value.
Most companies start off as a private enterprise. But when a company grows in size, it can decide to become publicly listed on stock exchange by having an Initial Public Offering (IPO). The resulting shares, broadly speaking, are available for anyone to buy. This divides the company up into shares. So, if a company is worth $100 million and they issue 50 million shares, the stock price would be $2.
As a company becomes more profitable, the value of your stocks increases. But conversely, if a gaming company hit a downturn in their fortunes, you would see the value of your investment reduced. Investing in stocks and shares, of any kind, can be rewarding but it can also be risky.
Types of Esports Stocks
There are four major groups of stocks related to esports you should consider when building up your portfolio. The main ones are those that make the games and support the development of new competitive titles. The second group consists of all competitors and tournament organizers that actively make esports worthwhile. This is also the largest group, as it contains all the third-party tournament organizers and thousands of gaming organizations. Finally the final two groups are adjacent industries with esports in hardware manufactures and esports betting companies. Both are an integral part of making esports flow and contribute to the vast entertainment factor of the industry.
1. Major Game Developers
Major game developers like Electronic Arts, Activision Blizzard, Take Two, and Riot Games are all available as esports stocks Not only are they established in the video games market, but they too are growing in size and value because of the massive success of esports. These stocks offer both the chance to invest in esports and the wider gaming market.
2. Esports teams and small companies
As well as smaller esports companies with potential, esports teams are now starting to publicly list meaning you can buy their shares directly. Astralis, for example, was one of the first esports team owners and media organizations to go public, they currently have three esports teams. You can also look at publicly traded sports teams that own esports teams too.
Not all teams are publicly traded. Buying TSM esports stock is not yet possible, Team Solomid stock isn’t available as it is currently a privately owned company with a number of major private investors. You can still support TSM and its successful esports teams by looking for investments in the game titles its teams participate in. TSM acquired the Blitz playing analysis and training app in 2020 and it now makes up half of the company’s $45 million in revenue. This is a prime example of esports diversifying to cope with the impact of Covid-19. Cloud9 esports stocks are also not available as the team and company has not been publicly listed. It currently has 27 private investors or investment funds as backers.
3. Gaming Hardware Brands
You can also look towards makers of gaming hardware that is necessary for esports and competitive gaming. Brands like Logitech and Nvidia produce the hardware that esports players use, but they also have a market in high end computers even outside of gaming. These companies can be a great way to invest in esports stocks.
4. Esports Betting Companies
Esports bookmakers are becoming a big part of esports as a whole. They don’t offer just odds nowadays, but actively organize tournaments, sponsor gaming organizations and create an entire entertainment ecosystem within the industry. Those that are publicly traded or go through rounds of funding should spark your investor interest as the marriage between wagering and esports is becoming a very lucrative one.
Don’t forget that esports teams as well as organisations and streaming services might be owned by a larger company and you can back them by buying shares in their parent. Immortal Gaming, for instance, is owned by Anschutz Entertainment Group. They also own other famous brands such as Electronic Arts. Media behemoth Comcast operates tournaments, is building a stadium and owns its own professional gaming teams.
Why should you start investing in esports stocks?
Making money from esports is the obvious reason why you might want to invest in the best esports stocks. The stock market, approached correctly, can offer a good way to get a return on your money rather than other forms of investment. Esports shares could make you money if you are willing to take the risk.
Compared to opening a standard bank savings account, for instance, investing in stocks could see your money grow at a surprisingly fast rate. This is especially so in relatively new industries experiencing fast growth rates, such as esports. Fledgling brands can seemingly grow overnight into billion-dollar businesses. However, markets can turn into a downtrend just as quickly.
The liquidity of stocks should not be underestimated, it’s important to remember that the price and value of shares can go up as well as down. As a result, buying even the best esports stocks can be a bit of a gamble. So be sure that you are 100% sure of your investment and/or in the worst case can afford to lose it before you open yourself up to the risks of the volatile esports market.
How to invest in esports stocks
If you are thinking about investing in esports stocks, first you need to learn all you can about esports investing. You can make better decisions if you do your research on stock ownership, such as choosing a good brokerage to buy your shares on, market cap and float, along with key metrics for valuing a stock such as price to earnings. It is important to learn how to judge if a stock’s current value is a good investment, or if it is currently overvalued compared to the company itself.
There are a number of ways to invest in esports or buy esports stocks. You can buy esports stocks directly or buy stocks of related industry companies. If you are really serious about investing in esports, or buying esports stocks, you might want to consider using a stockbroker or contacting an investment expert, one who already knows the industry well and can advise you. You can also use a brokerage that lets you manage your investments directly yourself.
How to buy stocks in esports
Wondering how to invest in esports? Many people tend to buy stocks online from share dealing platforms. By heading to one of these sites you should be able to buy shares from any esports or gaming company listed on a stock exchange. Share dealing platforms cover the larger stock exchanges like the London Stock Exchange or New York Stock Exchange.
A stock brokerage is a company which is licenced to purchase and hold stocks on behalf of an individual investor. You have loads of choices here, with many online brokerages even operating without fees now. Check which brokerages are available in your region before opening an account with one.
Investing in esports ETFs
A somewhat less-risky alternative to buying esports shares in one company is to invest in an exchange-traded fund or ETF An ETF is a type of security available to buy like a share, but which tracks an underlying index or a basket of shares. ETFs can consist of multiple investment types, not only shares.
An ETF’s “basket” can include shares from multiple companies across many industries. Many though, will focus on stocks from several companies within one industry. The ETF’s managers will pick out the top companies to invest in, saving you the hassle. ETF investors can gain access to the growth of an industry, without needing to choose just a single company to invest in. The ETF manager is also responsible for balancing the TF, which could have larger holdings in one company or another. A good ETF should actively manage its balance, so you’re exposed to the potential risk or growth of an entire industry.
The main advantage of ETFs is stability. You’re shielded from downturns in a single company, instead getting a hedged investment in an entire industry. They aren’t all created equal though. Some ETFs have higher costs associated with managing them which can cut into your value, so do you research on who runs the ETF and how their management is rates.
Risk and Growth
If you are looking for esports stocks, 2021 has even more options than 2020. There is an incredible amount of hype surrounding an industry that is valued at nearly $1 billion in annual revenue and is expected to triple in size in the next few years.
Despite sustained industry growth, some believe the esports bubble will burst or decline. So be sure to think carefully about how much risk you are exposing yourself to when you decide to invest in esports stocks. If you are wondering how to invest in esports stocks, do thorough research and pick credible outlets for your investing activities.
Not a big fan of stocks? Betting with bitcoins is another way to make money with esports. Read our guide.