Top 5 E-Gaming Stocks to Watch in 2021
Gaming is one of the fastest-growing industries in the world, with e-gaming taking center stage in recent times. According to Statista, the global e-gaming market size is predicted to reach a whopping $200 billion by 2023. As more people embrace e-gaming for both leisure and competitive purposes, there’s a need to identify and invest in thriving e-gaming companies. Here are the top 5 e-gaming stocks to watch in 2021.
1. Activision Blizzard, Inc. (ATVI)
Activision Blizzard is a leading e-gaming company responsible for developing and publishing some of the world’s most popular video games such as Call of Duty, Overwatch, and World of Warcraft. In 2020, the company reported record-revenue growth of $8.09 billion, with earnings of $2.57 per share. With the shift to remote gaming due to the pandemic, Activision Blizzard has been able to attract more gamers and increased its reach globally. The company is well-positioned to rebound in 2021, making it a top e-gaming stock to watch.
2. Electronic Arts Inc. (EA)
Electronic Arts is another formidable player in the e-gaming industry, creating some of the world’s most iconic gaming franchises such as FIFA, Madden NFL, and The Sims. The company reported revenues of $5.5 billion in 2020, with a steady increase in stock value throughout the year. With the upcoming launch of new console technology, EA is poised for continued growth in 2021.
3. Tencent Holdings Ltd. (TCEHY)
Tencent Holdings is a Chinese multinational conglomerate, primarily focused on e-gaming. In 2020, Tencent’s gaming revenue grew by 40% year-over-year, with a reported $13.5 billion in the third quarter alone. The company’s e-gaming portfolio includes stakes in notable global gaming franchises like Fortnite and League of Legends, making it a lucrative e-gaming stock to watch.
4. Sea Limited (SE)
Sea Limited is a Singaporean e-gaming company known for its Garena Free Fire mobile game, which has over 80 million daily active users. In 2020, the company’s gaming revenue increased by 71% year-over-year, surpassing $1 billion in quarterly revenue by the third quarter. Sea Limited’s stock value has increased by over 400% in the past year, making it a prime e-gaming stock to invest in for 2021.
5. Unity Software Inc. (U)
Unity Software is an e-gaming and development company that works with global game developers to produce and innovate their games. The platform has over 1.5 million monthly active developers, with over 50% of mobile games developed using its software. In 2020, Unity Software’s revenue grew by 42% year-over-year, with over 50% of revenue generated from gaming. With the recent IPO launch and a promising growth trajectory, Unity Software is an e-gaming stock to watch in 2021.
In conclusion, e-gaming is a rapidly growing industry that shows no signs of slowing down, making it a highly lucrative investment opportunity. By watching the top e-gaming stocks like Activision Blizzard, Electronic Arts, Tencent Holdings, Sea Limited, and Unity Software, investors can capitalize on the growth of the industry and secure long-term profitability.
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