DBS Touts E-Sports Stocks as Bet on Millennial, Gen-Z Wealth

(Bloomberg) -- The electronic sports industry is likely to grow significantly in coming years and stocks in the sector are poised to benefit, according to DBS Group Holdings Ltd.

E-sports, or multiplayer video games played competitively by professional gamers, is a key investment theme in the Singapore-based bank’s quarterly CIO outlook as the phenomenon gains traction among increasingly wealthy millennials and their Generation Z counterparts. Live streaming will help lead to “exponential growth,” with companies such as Activision Blizzard Inc., Nintendo Co. and Tencent Holdings Ltd. set to benefit, according to Thursday’s report.

“E-sports is expected to undergo phenomenal growth in the coming years - from both a viewership and monetization standpoint,” the report said. “Game developers are predominantly the biggest beneficiaries given that they are involved in almost every facet of e-Sports – from games publishing to the creation of leagues and the hosting of tournaments.”

Streaming platforms and hardware manufacturers will also benefit, it said.

DBS Touts E-Sports Stocks as Bet on Millennial, Gen-Z Wealth

Exposure to the field has already been paying off for investors. The MVIS Global Video Gaming and eSports Index is up 47% since the end of 2018, compared with the S&P 500’s 31% advance. The gauge of 25 companies which includes NetEase Inc., Zynga Inc., Take-Two Interactive Software Inc. and Electronic Arts Inc., has risen 3.4% this year versus a 1.4% gain in the broader benchmark.

©2020 Bloomberg L.P.

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