Esports Penny Stocks Change The Face Of Virtual Gaming
When you think about esports or esports penny stocks, what comes to mind? For some, it’s “early-stage” companies setting up competitive events online. For others, it’s a brand new industry just beginning to evolve. The reality of it lies somewhere in between these two camps. That’s perfectly fine, especially if you’re starting to become familiar with this industry. It also means that now could be an important time to begin watching esports companies more closely.
Thanks to the global pandemic in 2020, entertainment got a dramatic facelift. Without the ability to gather in groups, live events and even sports were canceled. But the industries that began flourishing entailed a virtual or digital aspect. Streaming services, virtual payment processing, and anything “online” gained plenty of ground.
The “stay at home” trend was a big one to track. With economies beginning to reopen, the “new normal” is actually one that has also evolved. Everything hasn’t gone back to pre-pandemic trends. Instead, we’re seeing a post-pandemic hybrid involving traditional and “new age” things. This is where Esports comes into play.
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It got a nice boost in 2020. Now it has begun rapidly evolving thanks to companies pushing new limits. Initially, most think of it as “this thing for kids” to be entertained. But the industry itself and the money involved is much more than a passive thing. Revenues from competitive gaming alone are set to come in just under US$1.1 billion by the end of this year.1
Esports Penny Stocks To Watch
What’s more, the actual awareness of this new industry is rapidly expanding. Just slightly more than 800,000 people had heard about esports in 2015. Newzoo finds that nearly 2 billion people are now well aware of the industry itself, with over 660 million making up the active live streaming audience.
You might associate the industry with bigger names, including Activision Blizzard (NASDAQ: ATVI) or EA Sports (NASDAQ: EA). However, some of the biggest changes are being made by some of the smaller companies in Esports by comparison. In this article, we’ll take a closer look at 3 which have put forth new initiatives to stand out.
- Alpha Esports Tech, Inc. (OTC: APETF) (CSE: ALPA)
- Super League Gaming (NASDAQ: SLGG)
- Allied Esports Entertainment (NASDAQ: AESE)
Alpha Esports Tech Inc. (OTC: ALPHA)
Alpha Esports Tech Inc. debuted in the public markets earlier this year, bringing with it a multi-pronged approach to digital entertainment and gaming. This includes esports, mobile gaming, eCommerce, and tokenization. Its portfolio is built on the backbone of products like its GamerzArena, setting the stage for a new type of competitive experience. According to the company, it boasts over 100,000 active users and a rapidly evolving ecosystem. Over just a few short months, Alpha has reported partnerships and working relationships with big names in sports, entertainment, and education. Thes range from The New Jersey Devils and The Vancouver Whitecaps to Barstool Sports, ESPN Radio, and others.
One of the latest initiatives for Alpha is its focus on expanding its reach in multiple verticals. Earlier this month, in fact, the company launched a mobile gaming platform, GamerzArcade. This is the next iteration of its GamerzArena platform. It offers users with an Alpha Account the opportunity to compete in daily, weekly, and monthly mobile gaming contests for prizes. This more casual gaming platform runs in parallel with Alpha’s GamerzArena.
What To Watch With Alpha Esports
What’s more, the company also launched its GamerzYouth platform. This could be one of the most differentiating factors for Esports companies right now. Obviously, younger gamers are typically more active in using and viewing eSports and their related platforms. Whether fostering the next generation of gamers or inspiring a new group of avid viewers, youth gamers are an active but untapped pool right now.
The company’s launch of GamerzYouth brings a new type of programming. This focuses on gaming initiatives such as esports contests, education, and live events for amateur youth gamers. With access to Alpha’s Minecraft server, amateur users, 17 years of age and younger, can compete in a recreational league format across the three different minigames.
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According to Alpha, league play will consist of 1-2 days per week, where users will compete on the server against teams and individuals in a competitive format. In a recent update, interim CEO Matthew Schmidt explained, “As we continue to build out GamerzYouth, we believe this division will provide us with many customer acquisition opportunities, as well as additional revenue streams.”
Super League Gaming (NASDAQ: SLGG)
Echoing this sentiment, Super League Gaming has also taken a page out of Alpha’s book. A few weeks after Alpha launched GamerzYouth, Super League has begun establishing its own youth gaming platform. This week the company announced the formation of its Young Gamer Network and Core Gamer Network. In addition, Super League announced the acquisition of Bannerfy. This intelligent technology platform allows digital video and livestreaming creators to collaborate with tier one sponsors.
According to the company, sponsors are actively focused on reaching this youth audience. Super League said that brand partners focused on reaching young gamers through its programs include Moose Toys, ASTRO Gaming, Logitech G, and DTS Sound Space.
What To Watch With Super League
Matt Edelman, Chief Commercial Officer of Super League Gaming, said, “After integrating Mobcrush into the company, we saw a natural opportunity to establish clear audience segments around distinct demographics of gamers we now reach across every critical touchpoint – in-game, in-stream, in-content, and through compelling digital, and hopefully soon again, in-person experiences.”
On the flip side, the company’s Core Gamers Network presents opportunities to engage gamers 18-34. It includes Mobcrush’s reach across digital live streaming platforms to a Nielsen-verified U.S. audience of 85 million monthly ( December 2020 ) through more than 7.7 billion annual views. With this new and expanded reach, SLGG stock could be one of the esports penny stocks to watch right now.
Allied Esports Entertainment (NASDAQ: AESE)
Shares of Allied Esports has been trending sideways for the last few weeks as esports and tech stocks have run into some volatility. However, that hasn’t put a pause on Allied Esports’ expansion and transition following the departure of its former CEO, Frank Ng. Now, with new CEO Libing Wu in place, the company has already begun to build upon its growth model.
August has been a busy month for Allied. From launching an event tour with NASCAR to reporting strong viewership growth, the company has been making strides to diversify itself. First, its NASCAR-themed tour aims to bring gaming activations to racing fans this year. According to the company, its Allied Esports Truck is North America’s first and only 18-wheel gaming truck. It will make seven stops at NASCAR Cup Series race Midways and Fan Zones this month. It will begin at Go Bowling at the Glen in Watkins Glen and finishes November 4-7 at the NASCAR Cup Series Championship.
What To Watch With Allied Esports
This week the company announced its 24-hour programming schedule on Twitch had generated over 13 million live views since its November 2020 debut. Jud Hannigan, CEO of Allied Esports, explained in a press release this week, “As the past several months have proven, gaming fans want to watch competitive, high-quality content, and with weekly productions across multiple continents, we have the ability to grow our distribution library and reach new audiences quickly and broadly.”
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With the growth of esports entertainment, industry awareness, and round-the-clock access, Allied seems to be aiming at a more mainstream audience. As the new CEO gets used to the new position, it will be interesting to see other company initiatives heading into the rest of the year.
Are Esports Penny Stocks On Your Watch List Right Now?
It’s no secret that new industries can present great opportunities. We’ve seen it happen with the emergence of cryptocurrencies as well as trends like green energy. With Esports just beginning to gain attention, there’s a lot to keep in mind, especially since tournament play is no longer the “only” revenue driver for the companies right now. Everything from youth gaming to new initiatives that include bands like NASCAR could be just the tip of the iceberg for this evolving industry.
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