3 Best Video Games & Esports Stocks To Buy
Video gaming and Esports filled a lot of empty hours during the pandemic. That time spent with a video console has carried over post-pandemic as stocks in this category show continued growth well into 2021.
NVIDIA CORP (NASDAQ: NVDA)
Nvidia is part of the VanEck Vectors and Video Gaming and Esports exchange-traded fund (ETF). The company is delivering high-quality hardware to gamers and Esports players. Nvidia's G-SYNC graphics processing unit (GPU) is among the best in the business for video gaming and Esports competition. The G-SYNC GPU is designed for play on big format screens and delivers speed and realistic graphics. Nvidia's Reflex technology allows players to measure latency in their system. Latency is the time it takes a mouse click to reach the video screen.
Nvidia's 1Q22 revenue was a record $5.66 billion, an 84% increase over 1Q21. Of that total, gaming revenue accounted for $2.76 billion, up 106% over 1Q21.
SEA LIMITED (NYSE: SE)
Sea Limited is an e-commerce company that also has a successful gaming division. That division, Garena, now has 648 million active users. Active users are defined as players who participate within a given quarter. That 648 million number from 2Q21 is 61% higher than one year ago. More importantly, Garena's number of quarterly active payers has increased to 79.8 million, which doubles the number from last year.
Garena's strength in the gaming sector is demonstrated by Free Fire, the highest-grossing game in India, Southeast Asia, and Latin America in 1Q21. It is also June's highest-grossing mobile game on Google's Play Store. Sea Limited's 2020 revenue of $4.4 billion doubled that of 2019; its 1Q21 revenue of $1.8 billion is 146% higher than that of 1Q20.
ZYNGA (NASDAQ: ZNGA)
This is the company that developed free internet gaming. Zynga created Farmville, Words with Friends, and dozens of others. It has some 100 million monthly active users. Zynga makes money through direct credit card payments and its business partners. Players can buy credits for use in games, or they can accept credit card offers or take surveys from business partners.
Zynga 1Q21 revenue was up 68% to $680 million.