Esports Stock – Investing in esports and esports ETFs

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Published: Aug 26, 2020 - Last Updated: Feb 29, 2024

How fast is the esports industry growing?

The esports industry has experienced explosive growth over the past few years. Professional gaming has become mainstream, and viewership keeps rising. Esports fans around the world tune-in to watch competitive gaming matches on streaming platforms. League of Legends (LoL), Counter-strike: Global Offense (CS:GO), and Call of Duty (CoD) are some of the most popular esports leagues.

Business Insider reported that the esports industry should surpass $1.5 billion by 2023. Esports viewership is expected to rise from 454 million to 646 million between 2019 and 2023. Esports’ rapid growth is mainly due to famous athletes, celebrities, musicians, and artists investing in it.

One of the greatest NBA players of all time, Michael Jordan, invested in aXiomatic, the parent company of Team Liquid. Several pro soccer players have sponsored and participated in FIFA esports tournaments. With many professional athletes and celebrities supporting esports, the industry has gained the attention of numerous investors.

Esports’ popularity expands to a global audience. Statista shows that 57% of the global esports audience resides in Asia, 12% in North America, 16% in Europe, and 15% in the rest of the world. The esports industry has proven to be a prime investment with its large viewership and continued growth.

Is esports a good investment?

The esports industry should experience long-term growth. The Shadow League has stated that esports has “unparalleled potential for growth” given the vast market. Esports is a golden investment opportunity because investors can get more hands-on with events.

Esports has long-term potential, given the longevity of the gaming industry. Investors can focus on a specific niche market since the gaming industry is so big. For example, an Overwatch team investor mainly focuses on revenue strategies for the Overwatch fan base.

Overall, the esports industry is a fun and exciting market filled with passionate fans. Investing in esports is worthwhile given its diverse fan base, gaming leagues, and market opportunities.

Source: Business Insider

How to evaluate which esports companies to invest in

When looking to invest in esports stock, it’s essential to understand the types of esports-related companies. There are plenty of companies that offer stock, and with the market growing, even non-endemic brands are getting involved.

A non-endemic brand is a company who cannot use their product or service in esports. Some non-endemic brands in esports include Korean Air and Louis Vuitton. Endemic brands are companies whose products are used directly in esports. Some endemic brands involved in esports are Razer and Red Bull.

Gaming publishers play a significant role in the esports industry. Publishers are the ones that allow professional leagues to use their games. Large gaming publishers like Activision/Blizzard and Electronic Arts (EA) have growth potential, given their involvement in these leagues.

Players and organizations can use streaming platforms to broadcast esports matches and live events. Twitch, the largest streaming platform, enables viewers to engage with streamers while they watch. Tencent-backed Huya and Douyu have 310 million active users and are the largest live streaming platforms in China. Investing in streaming platforms is beneficial since esports broadcasts cannot be watched online without them.

Investing in esports ETFs

Esports ETFs have held up against the recent market chaos and are proving to be a substantial investment. If you are interested in investing in esports ETFs, then there are a few things to keep in mind.

ETF Trends has laid out specific guidelines on what investors should know before buying any esports ETFs. Investors should be aware that video gaming revenues are bigger than they expect. In 2019, gaming revenues should generate over $150 billion and are still doing well.

Video game publishers are looking to diversify their revenue streams. Cloud gaming, mobile gaming, and “gaming as a service” are some new ventures publishers seek. Investors should keep an eye on startups and new ideas that aim to serve esports fans, competitive gamers, and streamers.

Investors should know the difference between private and public esports investment opportunities. Esports teams, individuals, and certain small gaming companies are private investments because they aren’t publicly traded. Activision/Blizzard, EA, Nintendo, and Amazon are publicly traded companies that you can buy stock in.

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Best esports stock to buy in 2021

On July 28, 2020, The Motley Fool published an article on the best esports stock to consider investing in. These results were based on each company’s predicted growth rate and its role in the esports industry. The top 5 esports stock to buy in 2021 are as follows.

  1. Activision BlizzardActivision Blizzard is a major leader in the esports industry. They own rights to many games featured in significant esports leagues, like Call of Duty League (CDL) and Overwatch League (OWL). Hosts major gaming tournaments year-round.

  2. Tencent HoldingsThey are expanding at a rapid rate throughout China and abroad. Owns and operates Chinese streaming and social media platforms. A long list of video game franchises and partnerships with other major gaming companies.

  3. Take-Two InteractiveHas a track record of extending the lives of its gaming franchises. Created some of the most prominent intellectual properties (IPs) in the gaming industry.

  4. Electronic ArtsThey produce the biggest names in the sports game genre. They have partnered with major sporting leagues like FIFA, NBA, and NFL. Access to numerous athletes to host esports events.

  5. HuyaThey are the leading Chinese game streaming platform. It has over 300 million users and plenty of opportunities to expand abroad. Backed by Tencent, so their games can help benefit the platform.

Can I Invest in Esports Stocks in Canada?

Esports is booming the world over and in the North American market, it is tempting to think that the United States is the sole market of interest. In fact, the whole of North America has a booming esports industry and that has made Canadian esports stocks of real interest to investors.

However, the question that many potential investors want to know is whether you can invest in the Canadian markets legally depending on where you are based in the world?

Well, the good news is that you are indeed permitted to invest in Canadian esports stocks. The absolutely fundamental aspect to remember here is that you must go through the proper channels in order to complete your stock purchases legally.

There are a number of companies operating within the esports and gaming markets in Canada and they include the likes of Axion Ventures Inc, ePlay Digital Inc., Fandom Sports Media Corp., Global Gaming Technologies Corp., Shoal Games Ltd, and Victory Square Technologies Inc. to name but a few.

As with the United States, Europe, and Asia, investment in esports companies and technology providers is increasingly appealing to investors.

Celebrities and athletes who have invested in esports

Several celebrities and athletes have turned their attention to esports. They decided on investing in esports after seeing it as a profitable investment. Celebrities and athletes have used their money to invest in esports teams, organizations, and companies. Musicians and artists have even made appearances in popular video games.

Drake – Invested in the esports organization, 100 Thieves.

Sean “Diddy” Combs – Provided $30.5 million with other investors to fund the esports league, PlayVS.

Kevin Durant – Invested $38 million in the esports investment fund and management company, Vision Esports.

Marshmello and Travis Scott – Appeared in Fortnite to give musician performances and even had their in-game skin.

ESB Staff

Since: August 10, 2015

At we are a group of independent journalists with one big passion: Esports. We've been following the industry and have contributed to its growth since 2015.

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