After the massive success of Blockchain and the Cannabis industry, investors around the world are now looking for new platforms to make profits.
Well, the next big thing to invest in the market is electronic sports or Esports. The widely growing computer gaming industry has influenced the market to a great extent. And now, investors are looking forward to generating profits from this creative and innovative trend.
Also, the industry experts these days are launching live esports events. The esports tournaments are also rising high on the other side. The audience in the esports sector is growing day by day, and it represents chances of considerable forthcoming returns.
So, how can new investors buy Esports stocks?
How to Invest in Esports Stocks?
One of the best options for investors in the growing market is to invest in streamers. Twitch and YouTube are the big giants in this sector. Millions of game lovers are connected to these platforms. Also, popularity ensures future high returns to investors.
Other than this, investors can target the game publishers around. You should do some analysis on market trends as well as check which publisher is performing better and with higher stability. By doing this, it would be much easier to make a better decision about long term investments.
Some of the most prominent players in the industry are Take-Two Interactive Software (Ticker: TTWO), Nvidia Corp. (NVDA), Activision Blizzard (ATVI), Electronic Arts (EA), NetEase (NTES), Logitech (LOGI), and many more.
Each one of them has their unique potential. Plus, investors can generate revenues by getting associated with these big names in so many ways.
Beginners at present might be a little confused about how to invest in esports stocks. The great news is that there are many methods to get into this world. We have listed below a few of them to help you get started with the exciting trends.
Start With Esports Stocks
The first and most common place to get started with esports investment is to focus on publicly traded stocks. Note that the esports industry is crowded by many large players such as Amazon (NASDAQ: AMZN). For example, this brand created a big buzz in the market in the year 2014. Amazon acquired Twitch with a substantial investment of $970 million.
It is essential to understand that Amazon doesn’t offer pure-play exposure in the esports industry. However, you can still expect the desired stability. Many big companies like this can provide excellent investment opportunities to interested enthusiasts in the esports industry. As the market for online video gaming is improving, the returns on investments are also expected to grow.
Investing in Esports Related Stocks
There is no doubt to say that the esports industry has a full scale in the market. With the significant popularity of video games in the market, the profits are not just limited to the content creators. Instead, it has a direct relation to the affiliated marketing places, as well.
That is why experts advise investing in companies that provide products related to the esports industry. For example, NVIDIA (NASDAQ: NVDA) is rated as a gold standard in the industry. They design almost 86% of the computer chips for gaming enthusiasts.
Other than this, investors can also focus on other hardware products such as gaming consoles, keyboards, mice, and headsets as well. That is why new age investors can find excellent investment opportunities with Logitech International (NASDAQ: LOGI) as well as Microsoft (NASDAQ: MSFT).
Investing in ETFs
With the vast rise in the esports industry, most of the investors have forgotten the other routes to make profits. However, if you are curious enough to find new ways to boost profits, probably by taking the ETF route, then prefer to consider Video Game Tech ETF (NYSM: GAMR) option in the market.
It is essential to understand that the expense ratio for ETFs is a little high, with a tag of 0.82%. Almost 68 holdings in this sector are directly related to technology. Hence, if you are looking for other viable options in the esports industry, ETFs can be an excellent choice to go ahead.
The Bottom Line
There are plenty of options for investors around the world. You can pick any of these to ensure fast and reliable returns for each investment. Prefer to take an analytical approach and consider the most trusted strategies.