4 Small Cap eSports Stocks to Watch in 2019

The eSports stocks we’ve listed are emerging players in the nascent US$906 million market, and have the potential to grow as the industry expands

SmallCapPower | January 22, 2019: With millions of fans and the ability to generate $1.5 billion in annual revenues by 2020 according to a study by Deloitte, eSports is a fast-growing industry, providing investors with numerous opportunities. Defined as a competitive multiplayer video game in which spectators watch professional gamers play, the industry’s increase in popularity is being recognized and embraced on a global scale. In this emerging vertical, smaller companies in the market, such as the eSports stocks we’ve discovered today, have the potential to see tremendous growth in the next few years.

*Share prices as at close January 18, 2019, data obtained from S&P Capital IQ.

eSports Stocks: Next Big Opportunity for Investors 

Enthusiast Gaming Holdings Inc. (TSXV:EGLX) – $0.88

Enthusiast Gaming Holdings engages in the development and operation of global online videogaming communities. With over 75 million monthly active users and 80 gaming content websites, the Company owns the largest gaming exposition in Canada, with 30,000 yearly visitors. Seeing significant growth in its efforts, the Company has increased its online monthly active users by about 73 million since 2015. In its most recent fiscal quarter ended September 30, 2018, EGLX reported topline of $2.8 million and most recently announced its agreement with The Sims Resources on January 7, acquiring 100% of the assets.

  • Market Cap: $39.3 Million
  • 7-Day Total Return: -1.1%
  • 1-Month Total Return: +14.3%

ePlay Digital Inc. (CSE:EPY) – $0.07

ePlay Digital engages in developing and operating broadcast and live video technologies. As a mobile game creator specializing in sports and augmented reality (AR) entertainment, the Company offers white-label videos and marketing platforms. Management recently issued revenue guidance, stating that it is expecting US$42 million in revenue by 2021, primarily generated through consumer product sales and software licensing fees. At the 2019 Consumer Electronics Show (CES), the Company announced that it will add a new AR version to Big Shot AR, the first augmented reality sports mobile game.

  • Market Cap: $3.7 Million
  • 7-Day Total Return: -13.3%
  • 1-Month Total Return: -7.1%

FANDOM SPORTS Media Corp. (CSE:FDM) – $0.08

FANDOM SPORTS Media is an entertainment company that creates fan-focused sports content. The Company’s main product, FANDOM SPORTS App, is a sports news application, which allows users to participate in unfiltered sports talk. The app encourages fans to express their sports passions, pick fights, and earn rewards. On December 6, 2018, the Company became a member of the Consumer Technology Association (CTA) and launched its cloud-based, multi-tenancy enabled blockchain architecture platform at the Consumer Electronics Show on January 10.

  • Market Cap: $11.4 Million
  • 7-Day Total Return: -11.1%
  • 1-Month Total Return: -20.0%

Simplicity Esports and Gaming Company (NASDAQ:WINR) – $3.11

Simplicity Esports and Gaming Company engages in the virtual reality of gaming and sports entertainment in India and the United States. Owning and operating about 30 family entertainment centres across the United States and India, the Company offers an interactive experience to customers through the combination of augmented and virtual reality. Formerly known as SMAAASH Entertainment Inc. (NASDAQ:SMSH), on January 2 the Company announced the close of its all-stock acquisition of Simplicity Esports, becoming a wholly-owned subsidiary.

  • Market Cap: $10.1 Million
  • 7-Day Total Return: -34.4%
  • 1-Month Total Return: 17.5%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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