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.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 Tech
Alpha Tech (ALPA) is a Vancouver-based technology company that focuses on emerging markets in esports, mobile gaming, e-commerce, blockchain, and high growth opportunities.
The company’s Alpha Tech’s GamerzArena works as a virtual arcade and is its core asset. Alpha Tech’s freemium model has a community of 100,000 gamers that have the ability to deposit alpha coins as Bitcoin pegged tokens.
Its subscription-based service, GamerzArena+, allows players to pay US$12.99 and gain access to higher-paying tournaments along with unique and special events. The stores’ stats and gameplay on gamers allows users to monitor and improve their skills, and, for those who want to pursue the field professionally, to showcase their abilities to a larger audience.
Several universities and professional Esports teams use the platform to scout for players, including Penn State University, Syracuse University, University of Rochester, University of British Columbia, Western Michigan University, and the University of Albany. And, adding to its series of partnerships and collaborations, Alpha signed a deal with Spartan Athletics at the end of May.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.