Shares of FaZe Clan (NASDAQ:FAZE) began publicly trading on the Nasdaq last month after completing a special purpose acquisition company (SPAC) merger worth $725 million. The merger was first announced last October at a valuation of $1 billion. And some individual and institutional investors are betting big on FAZE stock.
FaZe operates as a media and influencer company that includes 94 total members. The majority of these members consist of gaming influencers and celebrities, such as Snoop Dogg and Babybay. Combined, these members boast a social media following of over 500 million fans across multiple social media platforms.
The company was originally founded in 2010 as a group of influencers who posted video game footage online. FaZe began branching out as popularity grew and moved into video game competitions (aka esports). In May, Forbes ranked FaZe as the fourth most valuable esports company. TSM ranks first place, followed by 100 Thieves and Team Liquid. According to Statista, the global creator economy has a total addressable market of over $13 billion.
In 2021, the company brought in revenue of about $50 million, forecasting $90 million of revenue for 2022. The SPAC merger is expected to raise $60 million, while current shareholders will own 77% of the company.
FaZe plans on bringing in more digital creators to its team to help them create a social following. CEO Lee Trink expanded on the company’s plans: “FaZe Clan will fund investments and we will create the product and we’ll own a bigger piece of the upside. That’s the future of the creator economy.”
After joining the team, members add “FaZe” before their name and become “immensely more famous the day after,” according to Trink.
With that in mind, let’s take a look at who is betting on FAZE stock.
5 Investors Betting Big on FAZE Stock
Tracking institutional ownership is important, as these large investors provide support and liquidity for stocks. Currently, 76 institutions have reported owning FAZE. Meanwhile, company insiders own 47.77% of all shares outstanding, while institutions own 31.77%. On top of that, institutional investors also own 60.83% of the public float. Let’s take a look at the company’s top shareholders:
- Nick Lewis, Director: 17.01 million shares.
- B. Riley Financial (NASDAQ:RILY): 12.47 million shares.
- Lee Trink, Founder: 5.17 million shares.
- Michael Treschow, Director: 4.99 million shares.
- FaZe Holdings: 4.19 million shares.
On the date of publication, Eddie Pan did not hold (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.
