The 3 Best Esports Stocks to Buy in July 2024
The best Esports stocks are booming as the sector pounced on robust momentum.
The sector is hitting its stride again after slumping post-pandemic. During the pandemic years, we saw a massive surge in video game sales. This laid the groundwork for sustained growth in the industry.
However, the past couple of years were a struggle for the industry. However, it’s now back to deliver for investors willing to stomach the risk. Moreover, the explosive expansion in viewership and brand interest over the years positions Esports as one of the most lucrative long-term investing trends. According to Fortune Business Insights, the esports industry is on track to grow at an annualized 20.9% through 2032. This highlights the sector’s robust long-term.
That said, here are three of the best Esports stocks offering healthy long-term upside potential. These stocks have established their dominance in the sector, and their presence will be felt for years to come.
Sony (SONY)
Through its strategic alliances and noteworthy investments, Sony (NYSE:SONY) has quickly become a force to be reckoned with in the Esports realm.
For starters, it owns the prestigious Evolution Championship Series (EVO), attracting millions of viewers each year. Moreover, the event allows Sony to leverage its PlayStation consoles and Airpeak drones to deliver a riveting live-stream experience.
Moreover, earlier this year, Sony was announced as a founding partner for the inaugural Esports World Cup in Riyadh, Saudi Arabia. The new, multi-year partnership with the Esports World Cup Foundation is another feather in Sony’s cap as it looks to dominate the Esports scene.
Additionally, one can’t overlook Sony’s partnership with Esports titan Fnatic, which led to the creation of INZONE gaming gear, including hardware fine-tuned by Fnatic’s top players. These initiatives will continue to enhance Sony’s gaming reputation while driving hardware sales and boosting other business segments.
Microsoft (MSFT)
Tech behemoth Microsoft (NASDAQ:MSFT) has effectively transitioned into a dominant force in the gaming realm through its much-talked-about acquisition of Activision Blizzard. The acquisition indirectly impacts hardware sales, but in Esports, it promises substantial long-term gains.
Activision Blizzard has a massive presence in Esports, running prominent leagues such as Overwatch and Call of Duty Leagues. These leagues effectively tap into high-growth markets while cleverly integrating Esports into broader gaming sales.
Furthermore, Activision’s layering has had a material impact on Microsoft’s More Personal Computing division. This is evidenced by its superb results of late, with Q3 sales hitting $15.6 billion, a 17% jump over the prior-year period. Looking ahead to Q4, sales are projected to rise by 10% to 13% in constant currency, potentially reaching $15.6 billion. This growth is fueled by the strategic push into Esports, highlighting Microsoft’s impressive adaptation to market trends.
VanEck Vectors Video Gaming and eSports ETF (ESPO)
The VanEck Vectors Video Gaming and eSports ETF (NASDAQ:ESPO)is a compelling, low-cost way for investors to gain exposure to the burgeoning video gaming and eSports sectors. The EPSO ETF places its bets on the industry giants in game development and related tech verticals. Hence, it effectively captures the essence of gaming enthusiasm and lucrative stakes in top tech fields.
Moreover, with an expense ratio of just 0.59%, ESPO 29 premier stocks in the video game and eSports arenas. Consequently, it has been an excellent wealth compounder, boasting roughly 99% returns over the past five years. In the past year alone, the ESPO ETF has surged upwards of 19.9%,
Some of the stocks it invests in include Nintendo (OTCMKTS:NTDOY), Advanced Micro Devices (NASDAQ:AMD), and Unity Software (NYSE:U), to name a few. Hence, with video gaming evolving rapidly, ESPO continues expanding its footprint with considerable aplomb.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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
