6 Ways to Play the Hottest Investment Sector of the Year
NEW YORK, Sept. 30, 2019 /PRNewswire/ -- The soon-to-be $300-billion gaming industry isn't just growing - it's exploding. Forking off in so many different directions that investors are struggling to understand all of these lucrative new sectors. The $1-billion (and counting) esports segment, for example, is literally tearing down the walls of traditional sports, and giving everyone in the world access to the newest events. This is the very best of globalization and technology. Mentioned in today's commentary includes: Comcast Corporation (NASDAQ:CMCSA), AT&T Inc. (NYSE:T), Intel Corporation (NASDAQ:INTC), Advanced Micro Devices, Inc. (NASDAQ:AMD), Micron Technology, Inc. (NASDAQ:MU)
By next year, tech consulting firm Activate forecasts that 70 million people will watch a single esports final. That's a viewership that would challenge any traditional sporting final. By 2021, esports is set to have 84 million viewers, beating out every single sport except the NFL on a daily basis.
By 2022, the global esports market is expected to triple, hitting the $3-billion mark, according to Goldman Sachs. Investors in this segment have a nearly unlimited choice of entry points, from game developers and publishers to media rights holders, data collectors, streamers, and even … beverages.
If you're looking for someplace to invest capital in this fast-growing industry, here are 5 back doors that provide plenty of potential upside while no one's caught on just yet:
#1 Comcast Corporation (NASDAQ: CMCSA)
Comcast (Xfinity) isn't going to be left out of this game. That's why it's recently announced it will build a $50-million esports arena.
The 'Fusion Arena' will be housed in downtown Philadelphia will have a 3,500-seat capacity and more than 2,000 square feet of LED screens, training facilities and private rooms for players to stream video to their fans. This will be the home of Comcast's own esports team, the Overwatch League, but it will also be the East Coast esports hub. And it's a first: The first-ever arena built from the ground up, solely for esports.
The arena is slated to open its doors in 2021 and is symbolic of Comcast's determination to become a leader in the esports revolution.
Comcast has plenty going for it right now, with Q2 2019 gains that showed revenue up 24% year-on-year last quarter and adjusted profits up 13%. Cable TV is still a drag, but Comcast may have found its next great revenue driver.