The biggest risk against buying Epic Games stock centers around the epic (pun intended) battle between the company and app ecosystem companies Apple and Google. Bear Case: Why pass on Epic Games’ stock at IPO? Unreal Engine has quickly become the de facto gaming development platform for publishers like Microsoft Studios, which partners with Epic Games on the Gears of War franchise. In-the-know investors understand the power of Epic Games’ Unreal Engine game development platform. The company will benefit regardless of whose name is plastered on the title screen. The Fortnite universe will be instrumental in shaping esports and the gaming community for decades to come and that’s just one franchise.īut it gets even better for Epic Games. Gaming is no longer considered a waste of time… esports is quickly becoming a serious career choice, with a global market that generates more than $1 billion in revenue from an audience of nearly 500 million viewers. For example, last year rapper Travis Scott grossed $20 million on Fortnite… for a nine-minute digital concert!īut this is just getting started! The video game industry has a long runway for growth. Smart observers understand that Fortnite is more than a video game and more of a culture and lifestyle brand that has many ways to monetize its massive audience. According to data from Nielsen, Fortnite alone grossed revenue of $1.8 billion in 2019. A 2018 study reported 70% of Fortnite users to buy digital items and those who do spend an average of $84.67. While the game is free to play, very soon players are snapping up V-bucks to buy customization gear in the game and Battle Passes to unlock additional features. The Wall Street Journal wrote an article about the addictiveness of Fortnite, pointing out that parents are locked in an “unwinnable war” to get their kids to turn off the game. With more than 350 million players, if Fortnite Nation were its own country it would be larger than the United States. The game has become a cultural phenomenon and a rite of passage for many teenage boys. Have you played Fortnite? Then it’s likely you understand why the stock will be a hot ticket once it hits the markets. Or, skip straight to when can you buy Epic Games stock Bull Case: Why Buy Epic Games Stock? With a combination of powerful software that helps companies build graphically intense games (Unreal Engine) and a development studio that’s riding high on the success of Fortnite, there are plenty of reasons to be excited about an Epic Games IPO. With the game engine, creator Unity having IPO’d in 2020 and Roblox recently hitting public markets, Epic is one of the - if not the - largest privately traded gaming companies. In This Article Here’s Why Investors Want to See Epic Games IPO Here’s what investors should consider before buying shares once Epic Games’ stock is available to the public. However, it’s important to note Epic Games stock faces a variety of risks and could disappoint investors that buy shares after Epic Games’ ticker is available as an IPO. Epic Games stock IPO is likely to be, well, epic. And that makes perfect sense, Fortnite might take place in a fantasy world with fake V-bucks being the currency of choice, but the profits are very real.īut it’s not just gamers looking to own this company, even Wall Street suits are highly interested in getting in on Epic Games. If you think GameStop is a can’t-miss stock, it’s likely you are waiting for the day Epic Games’ stock symbol debuts on the public markets. If Fortnite popularity declines in popularity it could drag Epic stock down with it.Epic is engaged in a high stakes legal battle with Apple and Google that could turn out poorly.
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