The Real League of Legends: Smart Gaming Stocks for Investors
From Minecraft to Super Mario Bros., video games have captivated players worldwide since they reached mainstream popularity in the 1970s and ‘80s. The pandemic only magnified interest in gaming: As Covid-19 kept many consumers at home, video game sales worldwide surged 20% to a staggering $180 billion. Today, three out of four Americans, or roughly 244 million of us, play video games for an average of 14 hours a week, according to research firm NPD.
Notably, Esports now has an audience of about 500 million people worldwide — with a 70% increase in the number of viewers in the United States alone last year. Esports competitions are as or even more popular than the traditional powerhouses of football, basketball and baseball: In 2019, the League of Legends World Championship notched nearly as many viewers as the Super Bowl.
As broad popularity powers growth in the sector, this tech trend will likely continue to skyrocket. Investors Prism’s Emerging Gaming & Esports index tracks small/micro-cap stocks that develop and market products or technology in the online gaming and Esports arena. While GameStop stole most of the gaming headlines earlier this year, there are plenty of winners when it comes to investing in the world of gaming.
If you’re looking to include a few gaming and esports stocks in your portfolio, here are some options worth a look:
Corsair Gaming, Inc. (Nasdaq: CRSR)
Corsair Gaming, Inc., is a global provider of gaming gears such as keyboards, mice, PC cases, controllers, streaming gears and other gaming-related devices. Since the company had its IPO last fall, the stock has returned over 150%.
Glu Mobile Inc. (Nasdaq:GLUU)
Glu Mobile, Inc. is an American developer and publisher of video games for mobile phones and tablet computers. On Feb. 8, Electronic Arts (NASDAQ:EA) announced it was acquiring Glu Mobile at a market cap of $2.4 billion, or $2.1 billion when excluding the cash on Glu Mobile’s balance sheet.
Gravity Co., Ltd. (Nasdaq:GRVY)
Gravity Co., Ltd., has seen its sales rise dramatically over the past year and its stock has grown by more than 400%. Most recently, investors have been impressed with the company’s return on equity.