Why the stock market doesn’t like esports

Between e-sport and the financial markets, no happy union is yet to be celebrated. For the (rare) structures to have attempted the leap of the angel on the Stock Exchange in recent years, the scenario has been identical each time: after an encouraging start, the price then plummeted heavily.

After a peak in its capitalization a few days after its IPO at the end of 2019, at 75 million dollars, Astralis thus saw it collapse by more than 70%. Listed since 2020, Guild Esports, meanwhile, has seen its value be divided by more than 14, going from 55 million to 3.9 million in capitalization since its IPO in 2020. Arrived on Wall Street with drums and trumpets last summer, FaZe Clan saw its capitalization approach $1.5 billion for a time. But it has since melted like snow in the sun, to 33 million, an evaporation of 97% of its stock market value…