eSports are taking the world by storm! By the year 2021, eSports spectators are said to reach around 250 million. According to a study by Statista, the eSports market is set to make over 1.5 billion USD by the year 2021. Last year, the emerging market made just under $1 billion. Now, investors can’t wait to get their hands on emerging eSports stocks.
eSports Stocks to Watch in February
Many major tech and gaming companies have already put their feet in the space, but there are a few small-cap companies that are emerging in the industry. Today, we’ll take a look at two eSports stocks making moves.
Turtle Beach Corporation (NASDAQ:HEAR)
Turtle Beach isn’t an eSports stock per se, but the company is making a big stance in the gaming industry. The San Diego-based company operates as an audio technology company that makes gaming headsets for various entertainment consoles. As eSports continue to grow, more gaming gear will be purchased.
There likely won’t be specific merchandise that will be sold like in professional sports teams. Instead, fans will most likely buy into what their favorite streamer uses and this is what Turtle Beach is probably counting on. The eSports stock is already up 20% in 2019. For the year, HEAR is up 877%.
Its price target was just recently lowered by D.A Davidson analyst Tom Forte, but seven out of the top 10 headsets sold in North America were made by Turtle Beach. The company will release its Q4 sales results in the next few weeks, which is why Turtle Beach remains on our eSports stocks to watch in February.
According to Yahoo Finance, HEAR is trading at $16.86 a share, up +$1.11 (+7.05%).
Enthusiast Gaming Holdings Inc. (TSXV:EGLX)
Enthusiast gaming is another eSports stock that is flying under the radar. The company is based out of Toronto, Ontario and it develops and operates an online community of video games worldwide. This past week, the company announced the hiring of a US sales team. In addition to the sales team, Enthusiast Gaming opened a San Francisco Office.
“The decision to open an office in San Francisco was a logical step in our business growth strategy,” said Eric Bernofsky, COO of Enthusiast Gaming. “A large number of ad agencies and game publishers are located on the West Coast and it’s critical that we meet clients where they live to service them most effectively.”
The company’s new San Francisco office should push exposure into the North American gaming space, which could mean big things for Enthusiast gaming down the road. EGLX stock has not seen the gains that HEAR has, but this past month, the eSports stock has been solid. According to Yahoo Finance, EGLX is currently trading at $1.06 a share, down -$0.03 (-2.75%). For the month, the eSports stock is up nearly +30%.
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