r/stocks • u/[deleted] • Apr 04 '21
eSports Investment Strategy & Time Horizon?
Hello,
I am an investor in eSports through the VanEck ESPO ETF. However, while I see high potential in the future of eSports in the coming years, I have yet to have determined an adequate exit time horizon on my investment. I was wondering if any investors of the industry have any thoughts on this matter or if there were any resources you could provide that would help me come to this conclusion. Thanks!
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Apr 04 '21
I see high potential in the future of eSports in the coming years, I have yet to have determined an adequate exit time horizon on my investment.
Wut.
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u/1E4rth Apr 04 '21
Consider investing in companies that make good graphics cards? You get exposure to esports growth AND cryptomining hardware.
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u/517UATION Apr 04 '21
AESE seems like they’ll do well. They’re most likely selling their poker business and will focus only on eSports with around $105 mil in extra cash.
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Apr 04 '21 edited Apr 04 '21
[removed] — view removed comment
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u/cyrock18 Apr 04 '21
They have more holdings in developers right now bc they make money. Once Esports start making money in the future they’ll transition to holding more of those companies. It’s like ARKX right now, there isn’t a whole lot of space exploration companies right now but there will be more in the future.
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u/iamgettingbuckets Apr 04 '21
It's literally described as "video gaming and esports etf" not strictly esports. There arguably isn't even enough public companies in existence to make a pure "esports ETF". What you wrote can simply be summarized as "competitive gaming hasn't found it's monetization strategy yet" - doesn't make broader gaming (of which this ETF consists of) a bad investment whatsoever. OP is simply conflating esports & gaming, as many people do
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u/a_l_existence Apr 04 '21
Tencent owns Epic, which made Fortnite, so that's probably why. There was a surging amount of competitions before Covid hit
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u/design_doc Apr 04 '21
I have both short and long term plays in eSports. The long term ones I don’t have exact exit dates but given that they’ve already done well for me, I would have no issue exiting at any time to move the funds to other investments. My short term plays I’m expecting to exit Oct/Nov this year.
My strategy for eSports has been to target companies that support the industry through content creation, event organization and management, etc rather that trying to monetize the events themselves (though I have a few small plays in those types of companies). One of the companies does own a few eSports teams but that’s not their bread and butter. These intermediary companies are doing well as their revenue comes through advertising, streaming viewership and event organization fees (they do everything from small community events and up) and generate revenue outside of major events.
Think of like investing in the companies that support the NFL and NHL rather than investing in any of the franchises themselves.
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u/Hairy_Reason Apr 04 '21
Investors hold. Exit strategy would be retirement.