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With the rising popularity of esports, some companies are jumping on the bandwagon to appeal to this large and growing segment, Juenger says.
Here are five companies that will likely reap massive profits from the overlooked sport:
Esports - Impact - Activision - Blizzard - Beneficiaries
Esports' Impact: Activision Blizzard is one of the biggest beneficiaries of the esports boom thanks to the success of its recently-launched Overwatch League, a professional esports league for the widely popular video game "Overwatch." The league's ascendance has helped catapult the esports category into the mainstream.
There is significant potential to generate revenues and profits from the league via sponsorships, advertising, and media rights, Juenger says. He believes the league's continued success would deliver "many multiples" of cash flow in the long run.
Overwatch - League - Opportunity - Market - Investors
"Overwatch League represents a rare opportunity for public market investors to become equity owners in a professional sports league, at an early stage," Juenger wrote.
You can view Activision's stock price in real time here.
Esports - Impact - Arts - Reward - Esports
Esports' Impact: Electronic Arts will likely see the reward from its esports play "over time," as Juenger describes the gaming company's esports approach as more "grassroots." There will be an "incremental monetization opportunity over time," he said, as EA leverages its partnerships with sports leagues, such as FIFA, and TV networks, like Disney, to mutually promote and engage audiences at sports events, as well as their respective video games.
You can view EA's stock price in real time here.
Esports - Impact - Cryptocurrency - Rush - Chipmaker
Esports' Impact: While the cryptocurrency rush has propped up the chipmaker's shares, gaming still makes up over 50% of Nvidia's business. That business has grown 33% over the past few years, Juenger notes. There are some long-term, secular trends that...
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