While a large portion of the economy was hit hard by the COVID pandemic, the gaming industry saw significant growth. You will likely have a safe investment choice in Corsair. Read on, and we’ll take a look at why.
|Corsair Gaming, Inc.|
|47100 Bayside Parkway, Fremont, CA, United States|
The stock market is an ever-changing landscape of winners and losers. You may be wondering what industries and companies make the smartest choice for an investor. Corsair is a gaming peripheral and pc component company.
PC components and accessories make up a large portion of the technology sector. Tech companies usually perform well after becoming established, but is Corsair one of the industry leaders?
Today we’ll tackle questions like:
- In general, how safe of an investment is Corsair stock?
- What is Corsair’s standing in the market, and are they financially healthy?
- What are some of the positives and potential negatives in purchasing Corsair stock right now?
- How has the pandemic affected the company and its market standing?
Account Minimum: $0
Fees: $0 per trade
Promotion: Get 1 free stock with a $100 deposit
About Corsair Gaming
In 1994 four engineers, one of whom is the current CEO, founded Corsair. Their initial product lineup consisted of computer memory chips. The company expanded to PC components (ram, cooling devices, PC cases, etc.), peripherals (mice, keyboards, headsets, etc.), and furniture such as computer chairs.
Their primary focus is on the gaming industry, targeting both professional and recreational gamers. They also support the e-sports community with high-end computer accessories and peripherals. The e-sport community drives larger and larger sales and marketing volume each year.
Corsair’s key personnel include:
Andy Paul is CEO and co-founder who started and presided over Multi-chip Technology before founding Corsair. He earned an honors degree in Physics from The City University in London.
Michael Potter is the CFO who has worked in finance for 30 years. Before working at Corsair, he served as CFO at Canadian Solar.
Thi La is the President and COO, who started at the company in January and has served as the COO since 2013. Prior to working for Corsair, she was the VP of Global Operations and IT for Opnext, inc.
The gaming industry
As an industry, gaming has exceeded growth expectations. The projections in 2020 were 1.05% until 2022. Instead of 1.05%, the industry has grown an estimated 10% YOY.
There are an estimated 2.8 billion gamers worldwide, with Corsair moving from 26% market share in 2015 to 42% in 2020 for its components. Regarding their peripherals, they make up an 18% market share for 2020 – up from 5% in 2013.
There are a few reasons that Corsair is a good option for long-term investors:
- Massive industry growth – as stated earlier in our overview, the gaming industry as a whole has exploded due to the pandemic.
- Non-volatile industry – Considering the large customer base of 2.8 billion gamers, it’s unlikely that these industry trends are going to reverse any time soon.
- Steady historical market share gains – as stated above, Corsair has continually proven to take over larger and larger portions of the gaming market share since their inception for both their PC components and their peripherals.
- 49% increase in net revenue compared to 2019 – while not the only company to see increased revenues related to the effects of the pandemic, Corsair’s massive gains assure us that they are doing better than ever.
While Corsair is a good long-term investment, Corsair does have some potential negative sides that can lead to losses. The following are a few reasons to be careful when investing in Corsair:
- “Meme stock” – A meme stock is a stock that has seen an increase in volume, not from performance, but because of social media and forum hype. The meme stock argument against the purchase of CRSR stock is that it’s like a balloon, artificially inflated and doomed to pop with nothing substantial to back it up.
- Market share could easily be bit into by competitors – As with anything in the tech world, there can be an inherent volatility due to the short life cycle of tech and software products. The argument would posit that Corsair may be up and coming today, but they could become a has-been relic in the future.
- Rise of cloud computing – As internet technologies become more advanced, the demand for powerful PCs could diminish. Technologies like Starlink internet and 5G home wi-fi make it increasingly possible for more significant segments of the population to use cloud computing solutions.
When it comes to cloud computing, a company houses servers in a central location. These companies can cast the computer desktop to their clients’ monitor screens at home.
If a company has this setup, the client only needs a computer with minimal technical specs to run the cloud computing software and a strong internet connection to send the input from their mouse and keyboard to the company’s servers.
While seemingly far off on the horizon, this shift could greatly damage the pc components industry from a consumer standpoint.
Corsair Gaming Competitors
Whether purchasing Corsair stock or not is right for you depends on your personal preferences and risk tolerances. That said, I would recommend investing in Corsair at the moment for these reasons:
- The gaming industry is booming
- Corsair is a leader in its industry and shows continued growth year to year
- They have a strong leadership team that has experience in the tech industry
- The company has a solid strategy to cement itself in the industry and a strategy for market growth
- Their status as a “meme stock” may be an overstatement considering their steady growth
If you are concerned that the cloud computing question could prove devastating to PC component companies, you may want to weigh this decision more carefully.
Overall, Corsair is a major player in the market, and they show no signs of slowing down. Their strength in the industry, especially in the components sphere, makes them a low-risk choice.
Should you invest $1,000 in Corsair Gaming right now?
Before you consider the Corsair, you'll want to hear this.
An award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now... and the Corsair wasn't on the list.
The online investing service they've run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.
I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.