3 Gaming Stocks Set to Benefit from the Esports Boom
There’s no denying the massive potential in gaming growth stocks.
The video gaming sector has come a long way from its humble beginnings, transforming from a niche pastime to an explosive, lucrative market.
Today, the best gaming stocks are riding the wave in online gaming, streaming, and Esports. Esports, in particular, has evolved into a massive global market, estimated to reach a whopping $12.4 billion by 2030.
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Esports stocks benefit from diverse revenue streams, including media rights, ticket sales, sponsorship, and advertising deals. As gaming develops, developers can create games that were once unimaginable.
The frontrunners in gaming stocks to buy are those that effectively harness innovation across hardware, software, and business models while fostering a loyal community that continues to generate revenues on a recurring basis.
In this thrilling landscape, it’s time to explore the top gaming stocks poised to dominate the future of gaming.
Electronic Arts (EA)
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Electronic Arts (NASDAQ:EA) hold a leading position in the video gaming realm, boasting an impressive lineup of popular gaming titles spanning multiple genres.
Its offering includes sports, racing, shooting, and other popular genres. Moreover, with an annual revenue base of over $7 billion, the firm has showcased remarkable success in the dynamic video game sector.
What positions EA as a leading Esports player is the wide array of competitive gaming titles in its repertoire.
These include some popular online gaming franchises, including FIFA, Madden, and Apex Legends. To put things in perspective, its FIFA soccer franchise attracts millions of players across the globe. It powers some of the most popular eSports gaming competitions, including FIFA eWorld Cup.
Its other popular franchises, such as Apex Legends, are linked to a global eSports series with millions in prize money.
Tencent (TCEHY)
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Amidst the strained U.S.-China relations, some investors may hesitate to consider Tencent (OTCMKTS:TCEHY).
However, those adopting a geopolitically neutral approach reveal the indisputable potential of this massive technology and entertainment conglomerate.
Boasting the world’s largest consumer market, China offers an enormous market for Tencent to flourish.
Tencent’s impressive portfolio includes publishing rights for League of Legends in China and managing the associated Pro League and World Championship. Also, the firm holds stakes in three e-sports-focused streaming platforms in the Chinese market, showcasing its robust position in the gaming industry.
Financially, Tencent presents an enticing prospect. Its balance sheet shows fiscal stability, with revenue growth rate and net margin over the years surpassing sector averages. Hence, for those willing to venture beyond geopolitical concerns, Tencent is a strong contender in gaming and esports.
Huya (HUYA)
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Huya (NYSE:HUYA) is a subsidiary of tech giant Tencent that has made its mark as a leading Chinese video live-streaming service.
It attracts millions of gamers nationwide, boasting an average quarterly paying user base of over 5.6 million. With the continued growth in the Esports market, these numbers could see a significant upswing in the coming years.
Huya’s successful formula involves collaborating with Esports event organizers and major games, solidifying live-streaming Esports as an integral content genre on their platforms. It remains committed to leveraging its major strengths by continually exploring a diverse business ecosystem.
Over the years, revenue growth for the firm has been tremendous, with over 50% average five-year growth. Though growth rates have slowed down substantially, it aims to unlock new growth opportunities while maintaining a dominant presence in the game live-streaming market.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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