Today’s biggest Rippers are two computer hardware companies capitalizing at the cross-section of “the new normal” and gaming as a broad culture. However, we’d like to spend today boiling down their case as intermediaries in the gaming revolution. For that, let’s dive in and take a look at how they’re affecting the sector:
🎮 The gaming and esports sector has really taken off amidst the COVID-19 pandemic. While traditional sports were held up by physical constraints, esports leagues and digital entertainment had a meaningful impact on the stay-at-home lifestyle, especially those like the $NERD and $ESPO ETFs. These two ETFs track a number of companies in the domestic and international gaming, digital entertainment and esports space. The core components of these ETFs are game studios and intermediaries. The $ESPO ETF has pulled an impressive 75% 1 year return while $NERD has pulled 61%.
🕹 Another company worth mentioning is Logitech. The company’s large variety of products got a lot of love from the “new normal” created by COVID-19. Their CEO acknowledged during an earning’s call on Tuesday that a critical component of their earnings growth was based on the increased demand for “spectator and participant sport.” In short: they sold a lot of gaming-centric devices and peripherals, resulting in total full-year sales for $LOGI to rise between 35-40% compared to last year. This is nearly 3 times higher than previous analyst forecasts. After the earnings call today, $LOGI rose nearly 16%.
🖥 Corsair Gaming also saw bullish activity today as a number of Wall Street analysts indicated a ‘buy’ rating for the gaming company. $CRSR produces RAM, fans, computer cases, keyboards, headsets and other peripherals. Their market positioning makes it an optimal play for investors looking to jump on the gaming and esports market at-large, capitalizing on component sales. We recently covered $CRSR on the Rippers list after its IPO in September. It rose 17% today.
That’s a wrap on Rippers for Tuesday. Check back on Thursday — we’re going to bite into the earnings from this week (we’re looking at you $TSLA 👀)