5 Best Esports Stocks to Buy Now

In this article, we discuss 5 best esports stocks to buy now. If you want to read our detailed analysis of esports companies and the outlook of the sector, go directly to read 10 Best Esports Stocks to Buy Now. 

5. Electronic Arts Inc. (NASDAQ:EA)

Number of Hedge Fund Holders: 41

Electronic Arts Inc. (NASDAQ:EA) is a California-based video game company that develops, publishes, and distributes interactive entertainment content worldwide. The company is mainly known for creating and publishing a wide range of popular video game franchises across various genres, platforms, and gaming experiences. It is among the best esports stocks on our list.

Electronic Arts Inc. (NASDAQ:EA) is also a dividend stock and the company currently pays a quarterly dividend of $0.19 per share and has a dividend yield of 0.61%, as of June 26. In the first quarter of 2023, the company reported a full game revenue of $372 million.

As of the close of Q1 2023, 41 hedge funds in Insider Monkey’s database reported having stakes in Electronic Arts Inc. (NASDAQ:EA), worth collectively $860.2 million. Steve Cohen’s Point72 Asset Management was the company’s largest stakeholder in Q1.

4. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)

Number of Hedge Fund Holders: 52

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an American video game publisher and developer known for producing and distributing interactive entertainment content globally. The company is involved in various aspects of the gaming industry, which makes it one of the best esports stocks to buy.

In its fiscal Q4 2023, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) posted revenue of $1.4 billion, which showed a 56% growth from the same period last year. The company’s gaming revenue for the quarter amounted to over $1.2 billion, compared with $910 million in the prior-year period.

According to Insider Monkey’s database for Q1 2023, 52 hedge funds owned stakes in Take-Two Interactive Software, Inc. (NASDAQ:TTWO). The collective value of these stakes is over $1.5 billion.

3. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 65

Sea Limited (NYSE:SE) is a Singapore-based multinational company that operates in e-commerce, digital entertainment, and digital financial services. The company, through its subsidiary Garena, has made significant investments and contributions to the esports industry. Garena is known for its active involvement in esports development and promotion, particularly in Southeast Asia.

At the end of Q1 2023, 65 hedge funds tracked by Insider Monkey were long Sea Limited (NYSE:SE), up significantly from 48 in the previous quarter. The stakes owned by these funds have a total value of over $2.88 billion.

Artisan Partners mentioned Sea Limited (NYSE:SE) in its Q1 2023 investor letter. Here is what the firm has to say:

“Top contributors to performance for the quarter included Southeast Asian e-commerce platform Sea Limited (NYSE:SE). Sea rose after achieving profitability in e-commerce a year ahead of guidance, and delivering significant growth in monetization and revenue despite moderating gross merchandise value (GMV) trends. Notably, our top four holdings entering the quarter (Sea, Meli, Nvidia, Airbnb) which represented 24.37% of capital on December 31, 2022, increased an average of 64.42% during the quarter.”

2. Activision Blizzard, Inc. (NASDAQ:ATVI)

Number of Hedge Fund Holders: 128

Activision Blizzard, Inc. (NASDAQ:ATVI) is next on our list of the best esports stocks. It is an American video game holding company that develops, publishes, and distributes a wide range of popular video games. The company operates in various segments of the gaming industry, including console gaming, PC gaming, and mobile gaming.

Activision Blizzard, Inc. (NASDAQ:ATVI) is also heavily involved in the esports industry. The company organizes and operates esports leagues and tournaments for its games, such as the Call of Duty League (CDL), Overwatch League (OWL), and Hearthstone Championship Tour (HCT).

In the first quarter of 2023, Activision Blizzard, Inc. (NASDAQ:ATVI) reported an 11% year-over-year growth in its in-game net bookings, mainly driven by the Candy Crush franchise. In addition to this, Candy Crush has remained the highest-earning game franchise in the U.S. app stores for the 23rd consecutive quarter.

Activision Blizzard, Inc. (NASDAQ:ATVI) was a part of 128 hedge fund portfolios in the first quarter of 2023, according to Insider Monkey’s database. The stakes owned by these funds are collectively worth over $10.4 billion.

Kinsman Oak Capital Partners mentioned Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q1 2023 investor letter. Here is what the firm has to say:

“We closed our long position in Activision Blizzard, Inc. (NASDAQ:ATVI) on the last trading day of the quarter. We initiated the position in November 2021 and, despite crystalizing a gain on the investment, we are admittedly a little frustrated with how this has played out. In January 2022, Microsoft (MSFT) agreed to acquire the company for $95/share, but regulators are determined to block the transaction, and appear increasingly activist, in our opinion.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) tops our list of the best esports stocks. The company is involved in esports through various avenues, including game development and Xbox. The company is also in the process to acquire Activision Blizzard in a $69 billion deal. In fiscal Q3 2023, Microsoft Corporation (NASDAQ:MSFT) announced a 3% growth in its Xbox content and services revenue.

At the end of Q1 2023, 289 hedge funds in Insider Monkey’s database owned stakes in Microsoft Corporation (NASDAQ:MSFT), worth collectively nearly $58 billion.

Ariel Investments mentioned Microsoft Corporation (NASDAQ:MSFT) in its first-quarter 2023 investor letter:

“Enterprise software provider, Microsoft Corporation (NASDAQ:MSFT) also traded higher in the period alongside the investor enthusiasm for Artificial Intelligence. Microsoft is well positioned as this new technology advances given its large investment in Open AI, the parent company of ChatGPT. Looking ahead, we continue to like Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within Azure, its hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”

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