7 best esports stocks to buy
Here’s how to invest in esports. Video games have evolved far beyond gamers sitting at home playing on their consoles.â¦
Here’s how to invest in esports.
The video game has evolved far beyond the gamers sitting at home playing on their consoles. Over the past few years, online gaming, streaming, and e-sports have become part of a booming business. Revenues for the global esports industry are expected to exceed $ 1 billion for the first time in 2021 and reach $ 1.8 billion in 2022, according to projections by esports analysis firm Newzoo. Media rights, ticket sales, and sponsorship and advertising deals account for the majority of esports revenue, but the gaming industry as a whole benefits from the popularity of esports. Here are seven analyst-recommended stocks to buy with skin in the esports arena.
Activision Blizzard Inc. (ticker: ATVI)
Activision Blizzard is the world’s largest independent video game developer. The company restructured its esports division in March. The division manages the popular Overwatch League and Call of Duty League, esports leagues that hosted massive live events before the pandemic. Morningstar analyst Neil Macker says recent allegations of discrimination and harassment at Blizzard have overshadowed the company’s solid growth figures. Macker claims that social distancing has helped the engagement of the Overwatch League, but the highly anticipated launch of Overwatch 2 has been delayed until at least early 2022. Morningstar has a âbuyâ rating and an estimate of the fair value of $ 97 for the ATVI stock, which closed at $ 75.08 on September 7. 28.
Sea Ltd. (SE)
Sea owns the Shopee e-commerce platform, the AirPay digital payment platform, and the Garena game publisher. Garena has been a huge success, thanks to the hit game Free Fire, which is extremely popular in Southeast Asia and Latin America. In 2019, the inaugural Free Fire World Cup attracted over 27 million views online and recorded over 1.1 million concurrent viewers on YouTube. Bank of America analyst Sachin Salgaonkar said the expansion in the United States and India could lead to higher profits for Sea over the next 18 months. Bank of America has a buy rating and price target of $ 380 for the SE stock, which closed at $ 316.72 on September 28.
Take-Two Interactive Software Inc. (TTWO)
Take-Two Interactive Software is a video game publisher and owner of popular franchises such as Grand Theft Auto, Red Dead Redemption, and Borderlands. One of the company’s most successful esports ventures was its 2017 partnership with the National Basketball Association to create the NBA 2K League. In 2020, NBA 2K League Twitch’s viewership increased by 69%, underscoring its formidable growth trajectory. Macker claims that NBA 2K is the most popular sports video game in the United States and China and is Take-Two’s largest annual game franchise. Morningstar has a âbuyâ rating and a fair value estimate of $ 200 for the TTWO stock, which closed at $ 149.11 on September 28.
Electronic Arts Inc. (EA)
Electronic Arts is the second largest independent video game developer. EA has hosted major esports tournaments for the FIFA franchises, Madden NFL, and Apex Legends. At the end of fiscal 2021, EA announced that Apex Legends had reached 100 million players during the game’s lifetime. CFRA analyst John Freeman says EA is a great investment, thanks to its valuable brands, unique relationships with professional sports leagues, attractive valuation and financial flexibility. Freeman predicts a 13% compound annual growth in EA’s revenue over the next three years. CFRA has a buy rating and a price target of $ 174 for EA stock, which closed at $ 133.77 on September 28.
Roblox Corp. (RBLX)
Roblox is a company with a platform that allows users to create their own games, interact and play in real time on the internet. These worlds became known as the “metaverse” and they could ultimately take esports to the next level in the long run. Freeman says Roblox is one of the most innovative companies with exposure to the gaming industry, and he projects an impressive 33% annual growth in bookings over the next three years. Freeman says Roblox has a unique community of over 8 million player-developers. CFRA has a “strong buy” rating and a price target of $ 96 for RBLX stock, which closed at $ 77.05 on September 28.
Amazon.com Inc. (AMZN)
In addition to its industry-leading e-commerce platform and cloud computing business Amazon Web Services, Amazon is also the parent company of the leading esports and video game streaming platform Twitch. Twitch generated estimated app revenue of $ 96.8 million in the second quarter of 2021, down from just $ 10.1 million in the second quarter of 2019. Morningstar analyst Dan Romanoff says Amazon’s dominance in e-commerce and its fast-growing advertising and cloud business continue to serve as bullish catalysts for the stock. Morningstar has a buy rating and price target of $ 4,200 for AMZN stock, which closed at $ 3,315.96 on September 28.
Alphabet Inc. (GOOG, GOOGL)
Outside of Twitch, the Alphabet YouTube video platform is the best place for esports fans to watch the latest pro tournaments for games like League of Legends and Counter-Strike: Global Offensive. Like Twitch, YouTube Gaming currently represents a relatively small share of Alphabet’s overall business, but esports could end up being a much larger contributor in the future. Bank of America analyst Justin Post says the above-expected cloud, YouTube and search growth, coupled with high buyout activity, is a winning combination for Alphabet investors. Bank of America has a buy rating and price target of $ 3,150 for GOOGL stock, which closed at $ 2,716.60 on September 28.
Best esports stocks to buy:
– Activision Blizzard Inc. (ATVI)
– Sea Ltd. (SE)
– Take-Two Interactive Software Inc. (TTWO)
– Electronic Arts Inc. (EA)
– Roblox Corp. (RBLX)
– Amazon.com Inc. (AMZN)
– Alphabet Inc. (GOOG, GOOGL)
More American News
Private markets: opportunities and risks for investors
7 best financial ETFs to buy now
7 best funds for retirement
7 best esports stocks to buy originally appeared on usnews.com