How stocks can influence the esports industry
A fact that not many people are aware of is that the esports market is actually firmly associated with quite a few of the groups who caused the Gamestop shares to skyrocket merely a couple of months ago. So we ask ourselves, is it possible for an esports-focused firm to become the next Gamestop?
The Gamestop phenomenon brought many factors about the stock market to light. The retailer has mostly always been quite a stable structure for all types of investors, however, it ended up completely changing the game. The company witnessed a massive surge in its share price after retail traders bought large amounts of its shares. This sudden increase was mainly brought about by social media’s tight finance groups.
Technology and investment
Through the use of modern-day technology, investing has never been easier! With a few taps on our screens, we are able to invest in any company we would like. However, this has also altered the methods that people utilize. For starters, in Gamestop’s case, “meme investing” was brought about. Most of the people who invested into Gamestop only did it to see what the outcome would be, while only a tiny amount of them actually had valid reasons to do so. These retail investors can easily be swayed by social media to invest.
When it comes to esports, in this case, most of the news reports on the sector are made through social media, whether it is financial news or simply news covering esports events. And now, esports is starting to be included in the video game world, with Gamestop’s apparent growing interest in competitive gaming.
So where do investments into esports come into play?
The stock market has not witnessed anything like the Gamestop phenomenon in a while, and this has been one of the very few stock market booms to reach international news in many years. Especially during the pandemic, there are now more and more people eyeing the stock market and considering investing. A lot of people are also waiting for the next Gamestop matter. Through this new interest, many industries can find benefits.
All investors who have been serious about this Gamestop situation will now find out that the retailer has many esports advances under its belt. Back in mid-2019, Gamestop said that its retail shops would be paying more attention to merchandise products, and that some branches would go on to become local esports hubs.
Speaking of Gamestop’s influence on social media platforms, many have been interested in stocks as of late. Most of this interest sparked from Reddit, however quite a bit did also come from Facebook and Twitter. Esports are quite prevalent on these three platforms, so it is not really a far-fetched idea that an esports firm will witness the next Gamestop situation. Whether that happens or not, this newfound interest in the stock market will surely carry over more investors into esports.
Promising 2021 esports stocks
At the moment, there are quite a few options when it comes to esports investments. The market is rich with esports companies, so investing in one should not present any issues. One of the largest and most promising ones is Esports Entertainment Group (NASDAQ: GMBL), which is also one of the first esports companies to make an appearance in the stock market. Its price has gone up quite well in the last couple of weeks.
Another good one is the relatively new but very promising Guild Esports (OTCMKTS: GULDF), which made its debut on the stock market quite recently. Guild Esports currently sponsors players in many different massively popular esports games, such as VALORANT and Fortnite.