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Alphabet, Amazon, Enthusiast Gaming, Facebook - the big investment opportunity

Mario Hose Mario Hose, news.financial
0 Comments| April 23, 2020

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The largest companies in the world all started small. The most expensive companies on the stock exchanges often have one thing in common, they are in online business. It is also hardly surprising that most of these companies are located in North America, a region with purchasing power and an appetite for innovation. Several 100 million people live on one continent as a possible target group. Everything that works there will be able to be repeated in other parts of the world. The main advantage of online business is scalability. Once established and millions of revolving and passive revenues can be generated. The key to success is the access to the customer.


The data octopus Google

Without Google services from Alphabet (NASDAQ: GOOG), a modern life for people and companies is hardly imaginable. The company started as a search engine and has grown into a data octopus, which tries to turn all personal information of its users into money. Every service that awakens a need or solves a problem is used by users on a large scale in a very short time and can be marketed.


A winner of the Corona Crisis

When Amazon (NASDAQ: AMZN) started selling books on the Internet in the 90s, many stockbrokers thought that at some point they would run out of money. The costs for shipping and logistics were simply gigantic. In the initial phase, the company overspent over 10 USD per shipment. In the new economy hype, the level of the burn rate was synonymous with a growth turbo, but when the bubble burst, it became a no-no. In the course of its development Amazon became the largest e-commerce platform and today earns money from the majority of transactions.


The largest social media community

In less than 10 years, Facebook (NASDAQ: FB) has grown to become the largest online community in the world, turning user access into cash flow through advertising opportunities. A particular advantage of this platform is that members have recruited new members in a pull effect. Anyone who wanted to be part of this, had to participate. The more connections to other people could be established, the longer the retention periods and the more data for marketing purposes was generated.


The new big investment chance

Those who missed out on joining Alphabet, Amazon and Facebook back then now have the chance to invest in a company that follows the same development models as the three giants. The company Enthusiast Gaming (TSX: EGLX) now reaches over 200 million people a month and is growing rapidly virally and through takeovers. More than one billion page views per month enable extensive marketing opportunities. The company aims to become the world's largest platform for gamers and Esports fans.


Positive analyst opinions for Enthusiast Gaming

The market value of Enthusiast Gaming is currently 120 million CAD. Compared to the other companies that have a development lead, the gaming platform is also priced favorably according to analysts' opinions. Most recently the share was traded at 1.65 CAD. B. Riley has set a target price of CAD 3.00 in the latest study, Haywood sees the target price at CAD 3.75, Paradigm Capital at CAD 3.50 and Canaccord has up to CAD 3.60 upside potential. There is still a long way to go to the league of Alphabet, Amazon and Facebook with a market value of several 100 billion, but a timely entry into Enthusiast Gaming can be worthwhile.


CONFLICT OF INTEREST & RISK NOTE
We would like to point out that Apaton Finance GmbH, the owner of news.financial, as well as partners, authors or employees of Apaton Finance GmbH may hold shares in the aforementioned companies and that there may therefore be a conflict of interest. Further details can be found in our ´Conflict of Interest & Risk Disclosure´.


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