The esports industry is witnessing significant growth and is expected to continue growing. The COVID-19 pandemic fueled the trend of gaming and esports as people turned to online gaming for entertainment and this led to a surge in participation and viewership. In more recent times, the rising demand for video games combined with the rise of live-streaming platforms has continued to support this trend and further boost the growth of the esports industry.
According to a report by The Business Research Company, the global esports market was valued at $2.73 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 21.2% during 2025-2029 to reach a value of $7.03 billion by the end of the forecast period. In 2024, North America was the largest region in the global esports market.
READ ALSO: 10 Unrivaled Stocks of the Next 5 Years and 10 Best Sin Stocks to Invest in 2025.
Other factors that are fueling the industry’s growth include the professionalization of esports and the rise in video gaming competitions around the world. The first-ever Esports World Cup was held in Riyadh, Saudi Arabia in July and August 2024. The event saw more than 1,500 players and included 23 competitions across 22 different video games like Call of Duty and Fortnite. The Esports World Cup in 2024 offered a massive prize pool of $60 million. The event attracted significant attention from sponsors and media and this contributed to the growth of esports globally. According to the Esports World Cup Foundation, the competition will take place annually in Saudi Arabia in Riyadh Boulevard City.
On February 11, the Esports World Cup Foundation announced that the first edition of the Olympic Esports Games will be held in 2027 in Riyadh, Saudi Arabia. The Esports World Cup Foundation has been named a founding partner and will work alongside the International Olympic Committee (IOC) to organize the event. This initiative aims to bridge the gap between esports and traditional sports through nation-based tournaments. The Road to the Games will start in 2025. It seems that esports is on track to become even more popular in the near future.
With that background in mind, let’s take a look at the 10 best esports stocks to buy now.
A crowded esports arena with a team competing in an online network.
Methodology
To compile our list of the 10 best esports stocks to buy now, we looked for the largest video game and esports companies. We also sifted through our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best esports stocks. From an initial list of over 25 stocks, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 10 best esports stocks to buy now were then ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Esports Stocks to Buy Now
10. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 21
Sony Group Corporation (NYSE:SONY) is a Japanese multinational consumer electronics and technology company. Through its Sony Interactive Entertainment subsidiary, the company is a major player in the gaming and esports industry. Sony Group Corporation (NYSE:SONY) is perhaps best known for its iconic PlayStation brand. The company is focused on esports through initiatives like PlayStation Tournaments and the annual EVO fighting game series. SONY is one of the best esports stocks to buy now. In March 2024, Sony Group Corporation (NYSE:SONY) partnered with the Esports World Cup to further its reach in the growing esports market.
The company is strategically focused on expanding its presence in the gaming market, particularly through its PlayStation brand. In December 2024, Sony Group Corporation (NYSE:SONY) reported that the number of monthly active users across PlayStation platforms rose by 5% year-over-year to reach a record 129 million accounts. In the third quarter of fiscal year 2024, which ended on December 31, 2024, total playtime increased by 2% and marked the 7th consecutive quarter of growth. Sony Group Corporation (NYSE:SONY) reported that over 40% of PS5 purchasers during the quarter were new users.
Interestingly, in November 2024, the company launched a beta version of a cloud streaming feature on the PlayStation Portal remote player. This feature allows PS Plus Premium subscribers to stream directly from the cloud servers and play more than 120 PS5 games on the PS Portal without needing a console. Sony Group Corporation (NYSE:SONY) is actively working to enhance the streaming game user experience and strengthen its competitive edge.
9. NetEase Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 32
NetEase Inc. (NASDAQ:NTES) is a Chinese internet technology company that is primarily focused on gaming, music, education, and e-commerce. The company develops and operates a wide variety of popular PC and mobile games for the Chinese market and international markets. NetEase Inc. (NASDAQ:NTES) ranks among the best esports stocks to buy now.
The company is focused on diversifying its gaming portfolio across genres while also expanding globally. In the third quarter of 2024, NetEase Inc. (NASDAQ:NTES) launched various new games to attract more players around the world. These strategic initiatives strengthen the company’s competitive edge across more markets. In July 2024, NetEase Inc. (NASDAQ:NTES) launched Naraka: Bladepoint mobile game which gained significant popularity and reached No. 4 on the iOS grossing chart after its September 2024 seasonal update. This game addresses the growing player demand for action-based player-versus-player (PVP) games. Additionally, in August 2024, NetEase Inc. (NASDAQ:NTES) launched Racing Master in Japan, which topped the App Store and Google Play free-to-play charts in the country.
To further strengthen its diversified portfolio of games, NetEase Inc. (NASDAQ:NTES) revealed that it is working on a number of exciting titles, including Destiny: Rising, MARVEL Mystic Mayhem, and Where Winds Meet.
