3 Stocks to Buy as the Esports Industry Continues to Grow


  • Esports stocks are soaring as engagement and brands converge in this rapidly evolving market
  • Tencent Holdings (TCEHY): Its robust presence in eSports, demonstrated by key initiatives like the inclusion of eSports in the Asian Games and partnerships with OCA, positions it for enduring success.
  • Sony (SONY): Sony’s strategic entry into eSports, highlighted by the acquisition of EVO and partnerships like Fnatic for INZONE gear, underscores its potential for growth in this dynamic space.
  • Electronic Arts (EA): EA’s deep engagement in the eSports ecosystem, supported by popular franchises and strategic events like the Madden Championship Series, positions it enviably for sustained fanbase expansion
Esports Industry - 3 Stocks to Buy as the Esports Industry Continues to Grow

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These eSports industry stocks are soaring as the sector witnesses robust growth. The surge in popularity is shown by VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) outperforming the S&P 500 with a 31% gain last year.

The remarkable expansion of the eSports space, characterized by rapid growth in viewership and subsequent top-line improvements, marks a golden era for investors. This growth is not only attributed to the growth in viewership, but the essence lies in the engagement and demographic richness attracting a plethora of brands to the eSports marketing sphere. With a keen eye on this dynamic market, businesses leverage direct and indirect marketing strategies to tap into an incredibly enthusiastic audience.

Moreover, according to Fortune Business Insights, the global eSports market, valued at $1.72 billion in 2023, is on track to hit an impressive $6.75 billion by 2030. Hence, with such massive growth rates and momentum behind the sector, it’s best to place your bets on these top eSports stocks to buy.

Tencent Holdings (TCEHY)

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Tencent Holdings (OTCMKTS:TCEHY), a titan in the video game industry and a frontrunner in the eSports domain, is on the back of massive strides in advancing the competitive gaming landscape. The company showcased its ambition at the 2023 Global eSports Summit and Tencent eSports Annual Conference. It rolled out its annual tournament plans for blockbuster titles, including League of Legends and Honour of Kings, with multiple eSports games in the pipeline.

Furthermore, Tencent leveraged its eSports prowess at the 19th Asian Games in Hangzhou last year. Including eSports as a medal sport, with four games under Tencent’s banner, is a testament to China’s strategy to advancing the competitive gaming sphere. Furthermore, Tencent’s collaboration with the Olympic Council of Asia (OCA) to champion eSports development across Asia positions it as a top player in the niche. Through hosting major tournaments, launching new games, and forging key partnerships, Tencent is positioned for long-term success in the eSports realm.

Sony (SONY)

Sony logo on the side of a building at its offices in Silicon Valley.
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Sony (NYSE:SONY) is another video gaming giant that has dramatically upped its game in the esports arena, forging key partnerships to move the industry forward. For instance, it partnered with Fnatic, a collaboration that birthed Sony’s INZONE gaming gear, including gaming monitors and headsets, developed under the guidance of Fnatic’s elite players.

Furthermore, Sony’s ownership of the world’s premier eSports fighting event, the Evolution Championship Series (EVO), is a testament to its leadership position in this sphere. Utilizing PlayStation consoles and Airpeak drones, Sony has helped deliver an unmatched live-stream experience from the event each year, attracting millions of viewers each year. Additionally, Sony filed a patent application for an eSports betting platform introduced in 2021 with the platform aiming to enhance live game streaming experiences. Though it hasn’t culminated into a full-fledged platform so far, it has the potential to become another major money spinner for the business.

Electronic Arts (EA)

EA games logo on a black brick background. EA stock.
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Electronic Arts (NASDAQ:EA) stands out in the eSports market, captivating millions with its compelling game franchises. With a portfolio featuring popular titles such as EA Sports FC, Madden NFL, and more, the company has cemented its status within the eSports ecosystem, fostering vibrant, competitive scenes. Its success is mainly due to its active community engagement and strategic investments in events such as the EA Sports WRC Knockout Trophy ’23 and the Apex Legends Global Series Year 2 Championship, broadening its global fanbase.

EA Sports President Cam Weber recently explained the company’s approach to amplify eSports engagement. Initiatives, including the Madden Championship Series, underscore EA’s commitment to layering gaming with competitive sports, aiming to elevate player competition and foster excellence. EA’s strategy enhances fan interaction through partnerships and building gaming-centric social communities, ensuring a robust and long-term connection.

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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