The esports industry is one of the fastest-growing markets in the world, and its ability to generate hype is unparalleled. The evolution of esports from a niche market to an international spectacle on par with some of the biggest sporting events in the world is proof that the video game industry can generate a buzz like no other. As an investor, growth on the scale that esports has seen is hard to ignore in any industry, and you might be wondering where the next big breakout stock will come from. Well, look no further than esports—particularly those in the penny stocks territory.
Investing in penny stocks almost goes hand in hand with gaming, given the risk, patience, and timing that’s involved in being successful at both. Penny stocks aren’t for the faint-hearted either, and you need a certain appetite for risk to stomach such investments. However, for those investors who are feeling up to the challenge, we’ve picked out some esports penny stocks that could be the next big breakout star of the industry.
Millennial Esports Corp (TSXV:GAME) (OTCQB:MLLLF) is a Canadian-based company that focuses on two specific areas of esports—racing and data provision. MEC has big plans to revolutionize the esports racing industry via its Eden Games studio in Lyon, France, which focuses on mobile racing games, and its unique motorsport IP, including World’s Fastest Gamer. MEC’s data division provides robust esports data and management information to brands, sponsors, and industry leaders, which allows users to monetize the huge number of eyeballs in the gaming and esports space.
Recently, the company acquired DriverDB.com, a recognized premier motorsports analytics provider. Millennial Esports plans to expand the site, which brings in over 70,000 active monthly users, to incorporate statistics for the rapidly growing esports industry. The company also recently signed exclusivity agreements with Nintendo and Porsche to launch Gear.Club Unlimited 2 Porsche Edition in November through its Eden Games studio, which has already had over 25 million downloads.
GAME stock is currently valued at just $0.61, which is a huge bargain considering how broad the company’s portfolio is in such a niche market. There’s no doubting that as interest in esports soars, demand for data provision will also soar. With names of the gravity of Porsche and Nintendo on its books, don’t expect this esports stock to maintain its penny stock status for too long.
Fandom Sports Media
Fandom Sports Media Corp (CSE:FDM) (OTCQB:FDMSF) is an entertainment company that focuses on user-generated content. The company’s main product, Fandom Sports App, is a sports news application that allows users to participate in unfiltered sports talk and encourages fans to express their sporting passions and earn rewards. While the company focuses on all sports, not just esports, there is an emphasis on the technology aspect, which makes it so much more promising to esports investors and users.
Fandom recently began fundraising efforts for an esports app that aims to revolutionize the industry by connecting fans across the globe. Once fundraising is complete at the end of Q4 and the app fully developed, Fandom looks set to benefit hugely from a market with a projected value in excess of $1 billion USD. FDM stock is trading at just $0.02, which means you’ll have to go a long way to find a cheaper esports stock.
While esports has come a long way in such a short space of time, it is still quite a young industry that will inevitably be prone to a few bumps in the road. Yet the untapped potential in esports stocks is incredible, and the two penny stocks mentioned above could help your portfolio really seize on that potential, and turn some huge gains should they take off.
Featured Image: DepositPhotos © AllaSerebrina