How FANDOM SPORTS Is Uniquely Positioning Itself In Booming Esports Market
A small publicly-traded company in Canada is looking to disrupt the betting space in Esports. That company is called FANDOM SPORTS Media Corp (CA:FDM – $0.40 & US:FDMSF – $0.29 & GER:TQ43 – €0.26).
According to market researcher Newzoo, 2 billion people will be aware of Esports worldwide this year, an increase from 1.8 billion in 2019. China will continue to be the country/market that will contribute most to this number, with 520 million Esports-aware people.
FANDOM SPORTS’ ingenious platform socially engages Esports fans by allowing them to bet on Esports outcomes through Fancoins that are earned and not bought which nicely falls under a non-regulatory and compliant scenario.
The large advantage Fandom enjoys is that their platform is agnostic and complements Esports themed enterprises rather than competes with them. This mitigates the large capex generally associated with user acquisition. Users can also earn Fancoins from watching ads and bringing others on the platform.
Esports are moving into the mainstream. The immense popularity of survival-based games like Fortnite, growing prize pools for Esports tournaments, the rise of live-streaming, and improving infrastructure for pro leagues have all paved the way for Esports to reach nearly 300 million viewers by 2022, on par with NFL viewership today.
According to a report from market research company iResearch, China’s Esports market is projected to reach 140.57 billion yuan (~$20 billion USD) in size by the end of 2020 and grow to 165.14 billion yuan (~$23 billion USD) in 2021. Especially, mobile games and Esports events contribute most to the growth.
We initiate coverage of FANDOM SPORTS with a buy recommendation and a price target of $1.26, which is 215% above today’s stock price.
| Smallcaps.us Advice: Buy | Price Target: $1.26 | Latest Company Report (pdf) |
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