The COVID-19 pandemic has led to the closure of many stadiums across the globe. However, some industries, such as the esports industry, have been thriving. The industry has been streaming events online and not forgetting live tournaments and esports betting. The growing trend of the booming esports industry makes it clear how competitive the technology space has become.
If you are an investor, you might be wondering which are the top-performing companies. Of course, you would like to invest in companies that have the best balance sheets, the best leadership, and not forgetting the most solid and reliable growth prospects. Discussed below are the top and most profitable esports companies in 2021;
DraftKings (DKNG) is an online fantasy and gambling company. This great company went public after merging with a blank-check company in 2019. This merger enabled it to receive an impressive evaluation of $6 billion. DraftKing recorded a high value of shares of $19.35, thus giving the company a remarkable value of $6.3 billion.
Currently, the company has a market cap of $23.337 billion. In terms of revenue, the gaming company made $644 million. That was in the record of the year 2020 and expects the amount to rise to over $900 million in 2021. In 2020, the company ended the year with a high note of $1.8 billion in cash and no debt in their records. One of the company's goals in 2021 is to raise more than $1 billion. It is planning to achieve this by converting senior notes to qualified investors.
Penn National Gaming
Penn National Gaming (PENN) is an American racetrack and casino company. By signing a deal with Barstool Sports, the company opened its doors to great success. The deal was to enable the company to acquire 36% of Barstool Sports. The deal amounted to $163 million, and that set the company to a lot of success. In 2020, the company's brand became more and more popular, thus making it one of the best companies to invest in in 2021
This remarkable company has a market cap of $14.477 billion. The company generated $5.3 billion in 2019, $4.98 in 2020, and is set to generate $5.57 in 2021. This clearly shows that the company is set for steady growth. From its records in the year 2020, it showed that the company earned $1.58 per share. The company is currently trading at 36.8 times the previous year's earnings and has a current $88.
Alpha Tech (ALPA) is a Vancouver-based company dealing in technology that focuses on mobile gaming, blockchain, high growth opportunities, e-commerce, and emerging esports markets. The company's Alpha Tech's GamerzArena is its main asset. This company's freemium model has more than 100,000 gamers who deposit alpha coins as Bitcoin-pegged tokens. The company has GamerzArena+, which is its subscription service.
Through the service, players can pay $12.99, which in turn opens doors for them to access more paying tournaments accompanied by special events. The stats' on gamers allows users to improve and monitor their skills. It is also an added advantage to those who want to get into the field professionally. This is because they can showcase their abilities to a bigger audience. Several universities use this platform to scout for players. Some of those universities include;
Apart from all those universities, Alpha has also signed a deal with Spartan Athletics. This proves that Alpha Tech is a reliable and well-performing company, that you as an investor, can trust.
Over the years, Skillz (SKLZ) has proved to be the OG in the mobile gaming industry. This company was the first publicly traded mobile esports platform. This remarkable company, Skillz, is based in San Francisco. This company creates a platform for developers to make franchises worth multi-million dollars. This is achieved through the creation of social competition in their games. Through the improved technology, Skillz hosts millions of mobile players globally.
The company has been recognized as one of the most innovative companies. In addition to that, it has earned several awards, for example, CNBC's Disruptor 50 awards. Skillz has been one of the fastest-growing companies in America with powerful management. If you are an investor, you should not doubt your decision to invest in this company. After some time, the results will show you that this is the best decision that you ever made.
Team SoloMid is one of the highest-ranked esports companies in the world. It has a value of $400 million and a revenue of around $35 million. TSM has participated in the completion of many video games, and its league has always been their pride. Despite the struggles that the company has had to undergo over the previous years, it has still maintained its large fanbase.
In 2020, the company made a higher profit with $150 million more than the previous year's profit. In 2021, its primary goal is to continue raising its value, and from its trend in the previous years, it is a sure bet that it will attain its goal. Therefore, if you are an investor, you can confidently invest in this company, knowing that there are limited chances of disappointments.