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While stadiums across the world have been closed from the pandemic, the esports industry has been thriving, streaming online events and live tournaments.
With all of the hype about the booming esports industry, though, it’s easy to see how competitive the tech space is getting. As an investor, you might be felt wondering which companies have the best balance sheet, the strongest leadership, and the most solid growth prospects.
If you’re wondering which are the best-performing companies out there at the moment, look no further than our round-up of the top four.
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DraftKings
Online gambling and fantasy sports company DraftKings (DKNG) went public via a blank-check company merger in 2019, and received an impressive $6 billion valuation.
DraftKings debut on the market saw shares move to a record high of $19.35, giving the company a value of $6.3 billion. DraftKings currently has a market cap of $23.377 billion. In 2020, the gaming company made $644 million in revenue, and expects it to increase over $900 million in 2021.
The company ended 2020 on a high note, with $1.8 billion in cash and no debt, but it announced earlier in 2021 that it plans to raise more than $1 billion through convertible senior notes to qualified institutional investors.
Penn National Gaming
American casino and racetracks company Penn National Gaming (PENN)’s deal to acquire 36% of Barstool Sports in early 2020 for $163 million has set the company up for a lot of success. The last year has seen the company’s brand become more and more popular.
Penn National Gaming has a market cap of $14.477 billion. Generating $5.3 billion in revenue in 2019, and set to generate $4.98 billion this year, and $5.57 billion in 2022, the company is set for steady growth. Penn is estimated to earn $1.58 per share in 2020, and based on its current price of $88, it’s trading at 36.8 times next year’s earnings.
Alpha Esport Tech Inc.
Vancouver-based Alpha Esports Tech Inc. (ALPA) has been seeing huge growth since its launch and since May 2021, the company has now officially gone public on the Canadian Stock Exchange which has already resulted in a 58% increase from its IPO.
The company’s Gamerzarena+ platform provides access to a community of over 100,000 fellow gamers. Along with its just announced partnership with Centric Gaming and its 150,000 social following.
Alpha Tech predicts that 10% to 20% of its Freemium users may potentially place average wagers of $2 to $10 per match. Which could result in $5.4M in revenue.
* Revenue based on $6 per wager monthly, of 15% of 500k user goal.
The platform also provides ways for players to be scouted to compete in university tournaments, with Penn State University, University of British Columbia, Western Michigan University. It also recently signed an exciting new deal with Spartan Athletics.
In addition to its strong working relationships, Alpha has a world-class team and advisory board of industry experts in crypto, film, tech, and gaming. These companies include Red Bull, Activision, and Atari.
Currently trading at 0.80 cents per share (CAD), the company is a super cheap growth stock to get in on early. Especially when comparing to competitors like Skillz $22.08 (USD).
With a ton of buzz about Alpha on Reddit, this should be on everyones watch list.
Skillz
As the first publicly traded mobile esports platform, Skillz (SKLZ) is the OG of the mobile gaming industry. The San-Franciso-based company’s leading mobile games platform allows developers to build multi-million dollar franchises by enabling social competition in their games.
Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide and distributes millions in prizes each month.
The company has earned recognition as one of Fast Company’s Most Innovative Companies and is also a two-time winner of CNBC’s Disruptor 50, one of Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000 in 2017.
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