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Business & Esports: Gaming Stocks Becoming the Most Profitable Ones in the Stock Market?

Gaming stocks

The much needed arrival of Covid-19 vaccines has pretty much redefined and restructured global markets. Travel and holiday-related stocks are coming back to their former selves, and ‘do it from home’ faithfuls like Amazon and Zoom are now starting to struggle in maintaining their rolicking stock prices, even from a month or two ago, and are expected to continue struggling a bit, in a soon-to-be post-COVID era.

Meanwhile, an unexpected entity has arisen! Amidst all this Covid vaccine frenzy, eSports or gaming stocks and shares seem to be a constant hit. The stock market’s finest eSports Exchange Traded Funds (ETFs), HERO and ESPO, are currently trading at highs never seen or recorded before. Both of those stocks have remained up around 75% year-to-date, performing way better than tech-angels NASDAQ 100 and the more accomplished S&P 500, proven performers at the market.

Moderna is one company that has experienced a sudden boom in its stock prices, right after the news of its successful Covid vaccine trials broke out. But the record-breaking gaming ETFs have never looked back (or down), since the Covid-induced gaming market debacle in March, 2020.

Stock returns of HERO and ESPO sky-rocketed in 2020. (Image Courtesy – The Next Web)

However, the latest records show that they (HERo and ESPO) are in perfect unison with new all-time highs in the industrial average recorded by  Dow Jones and S&P 500 combined.

ETFs are used in order to enable the investors to gain access to an underlying portfolio of shares and stocks, as well as the sum value of the assets that dominantly dictate their stock or share prices. These numerical attributes dictate and facilitate all the investments in an entire industry or sector, as most of these ETFs on the stock market are tethered to an automated index of shares and stocks, which is also the case with the pair of HERO and ESPO.

According to the records, the record prices experienced by both these ETFs can ultimately be attributed to killer performances in the market from their biggest and most consistent bets, including graphics buffs NVIDIA, Singaporean mobile phone manufacturers Sea, and Chinese game developers Tencent, which have returned a whopping 128%, 390%, and 52% year-to-date, respectively. Together, these three companies make up approximately 20% of the total of $1.17 billion only in assets governed by both the funds.

Gaming stocks showing numbers never heard of in eSports’ stock market history

Although times are great for the gaming industry, especially in the business sector, there still is one competitor in the market that has always proved to be a tough opponent. No matter how high the eSports ETFs might assemble, they still are no match whatsoever for Bitcoin, the most famous cryptocurrency of the world. In fact, BTC has not only exceeded both  HERO and ESPO in the market this year, but also has returned way more than ESPO, even if you count all of ESPO’s returns since it was first launched back in early 2018.

Bitcoin proves to be a hard competitor for Esports. (Image Courtesy – The Next Web)

The tables were turned for a while, though, as back in October this year, popular stock market analysts “Hard Fork” reported that both HERO and ESPO had combinedly outperformed Bitcoin over the course of the year. But the year is not over yet, and the aforementioned statistic was based on numbers from a few months back. In the previous month and a half,  BTC has picked up to as much as 80%, apparently from just $10,600 to approximately  $19,200 recorded in the first week of December. One bull run can actually make that big a difference in the whole scenario.

Although Bitcoin seems to be unbeatable right at the moment, eSports has surely spread out in the whole world far more than expected, and some of that credit should actually go to the pandemic itself. People not being able to leave home, inadvertently push themselves into playing games, and ultimately taking it to a professional and competitive level. Bigger gaming tournaments are being organized all over the world and bigger eSports facilities are also being made. Pro gaming is also taken up by many countries and communities as the means of eradicating unemployment from their respective societies. Thus the influx in the business opportunities created within the global eSports domain and the spike in the stock prices. What happens to these enormous feats and numbers in the post-Covid era, will be really interesting to see.

{This article is completely an informative piece. None of this is to be seen or pretended as any kind of investment advice. Your money, your risks.]