The Canadian eSports stocks we’ve chosen stand to benefit most from the emerging eSports industry in 2020
SmallCapPower | April 16, 2020: Esports is a new and growing sector, with video games such as Fortnite, League of Legends, and Overwatch taking the world by storm. Esports is expected to hold up well during the COVID-19 pandemic, as participants can compete remotely from home and viewers can watch anywhere the Internet is available. Today we have identified three Canadian eSports stocks we believe will perform relatively well given the current COVID-19 market environment.
*Returns are based on closing stock prices as of April 15, 2020
Enthusiast Gaming Holdings Inc. (TSX:EGLX) – $1.59
Enthusiast Gaming owns and operates an online network of websites devoted to video gaming as well as Canada’s largest video-gaming expo. EGLX’s content platform consists of over 80 gaming websites with more than 75M visitors every month, which has driven more than 12B ad requests per month. Behind Twitch Interactive, EGN Entertainment, and GameSpot, Enthusiast’s content is one of most viewed North American gaming sites. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, with approximately 55,000 people attending in 2018. Enthusiast Gaming reported record Q4 2019 pro forma revenue of $10 million, representing 178% year-over-year growth, while its viewer engagement surged 66% year over year to 1.7 billion views across the Company’s media platform.
Torque Esports Corp. (TSXV:GAME) – $0.62
Torque Esports focuses on three areas: eSports data provision, eSport tournament hosting and eSports racing. The Company’s gaming studio, Eden Games, focuses on mobile racing games and its motorsport IP includes the World’s Fastest Gamer (created and managed by wholly-owned subsidiary IDEAS+CARS, Silverstone UK). With the proposed acquisition of simulator company AiS, Torque offers gamers everything from Free to Play mobile games to the highest end simulators. As well, its wholly-owned subsidiary, Stream Hatchet, provides eSports data and management information to brands, sponsors, and industry leaders. And, Torque Esports’ tournament organizing arm, UMG, has recently added a digital tournament platform to its portfolio of assets. On April 13, 2020, shares of Torque Esports surged 56% after the Company announced that its virtual eSports racing series was shown live on TV for the first time in a new broadcast partnership with the Disney-owned, ESPN.
New Wave Esports Corp. (CSE:NWES) – $0.045
New Wave Esports is an esports and competitive-gaming focused investment company based in Toronto and L.A. The Company offers capital and advisory services (acting as an operator in portfolio companies) to the esports industry, primarily to teams, organizations, events, tournament organizers, platforms, networks, technologies, and tools. New Wave Esports announced recently that it had closed its investment in Talon Esports, a professional esports organization. Talon has won multiple championships across various gaming titles, including Overwatch, Street Fighter V, and Tekken 7. In addition, Talon has secured sponsorships with partners such as Logitech, H Cubed Investments, Noble Chairs and Twitch and is expected to be a solid addition to New Wave’s portfolio. Additionally, New Wave recently completed its acquisition of Event Matchup Gaming, a Toronto-based leading esports and competitive gaming event organizer, and player management company that produces onsite and online tournaments. Event Matchup Gaming hosts 80+ events a year, focused mainly on events within the fighting community including Super Smash Bros., Street Fighter V, Tekken 7, Dragon Ball Fighter Z, and more.
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