Are eSports companies a good investment? – Value The Markets

Are eSports companies a good investment? – Value The Markets

The eSports industry has seen explosive growth in recent years. It isn’t expected to slow down anytime soon. The global eSports market could be worth $1.9 billion in 2026, up from $691 million in 2019. That suggests a compound annual growth rate of 15.1% according to the latest figures.

The increasing popularity of video games is expected to drive the growth of the eSports industry. Growing acceptance for advanced gaming technology, evolving customer entertainment preferences, rising income levels, and increasing demand for mobile gaming are all tailwinds expected to help drive the industry’s growth through 2026.

With all these points in mind, investors are now asking themselves: should I invest in eSports companies?

Fundamentals of eSports stocks

The big players in this market are Activision Blizzard Inc., Alphabet Inc., and their Stadia platform, Electronic Arts Inc., Tencent Holdings Ltd., and Take-Two Interactive Software Inc.

Nvidia Corporation and Advanced Micro Devices Inc. also deserve a special mention. It wouldn’t be possible to play most modern video games without input from these two chip designers. They have designed and built some of the most advanced gaming chips to date.

The companies outlined are large gaming giants. They are diversified players on the gaming industry, with eSports being a secondary income stream. In terms of pure-play eSports industry stocks, there are limited options.

There’s UK-listed Guild Esports PLC, which made its debut on the London Stock Exchange last year. Meanwhile, Astralis Group is listed on the Nasdaq OMX Nordic. There