The Esports Mogul (ASX:ESH) share price down 5% on mobile update

With the Esports Mogul share price already up 100% in 2020, could the company's mobile announcement today draw more investor interest?

| More on:
questioning whether asx share price is a buy represented by man in red shirt scratching his head

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Esports Mogul Ltd (ASX: ESH) share price is down 5% in early afternoon trading. The fall comes after the company reported that its esports platform is going mobile.

Despite today's fall, shareholders of the thinly traded stock who have held on through this bumpy year, with sharp downswings followed by even sharper rebounds, are currently sitting on a gain of 80% in 2020.

That compares to a gain of just over 2% for the S&P/ASX 200 Index (ASX: XJO).

What does Esports Mogul do?

Esports Mogul owns and operates an esports (online sports games) media and software business. Mogul brings together players, game developers and tournament organisers with an initial focus in Australia and Southeast Asia.

The company's esports tournament and matchmaking platform offer automation for major esports titles with streaming functionality and in platform chat capabilities. Mogul's revenue is derived from sponsors for its esports events and partnerships with brands.

What's driving the Esports Mogul share price?

In an ASX announcement this morning, Mogul revealed it has begun its move into mobile with in-market beta testing of its Mogul App.

Currently, gamers wanting to play in mobile esport title tournaments do so online, via web platforms that includes the company's mogul.gg. Mogul says its online move will give players and publishers "a world-first experience on one device".

Esports Mogul said the global mobile games market is forecast to generate US$86.3 billion (AU$116.7 billion) in 2020. That already represents 49% of the total games market. And mobile is growing twice as fast as PC and console gaming.

The beta testing of the Mogul App is part of the company's plans for a broader global release of its esports tournament experience for the largest gaming segment.

Commenting on the mobile rollout, Mogul CEO Michael Rubinelli said:

This is an exciting step on our progression towards becoming the definitive global esports destination for branded sponsors and player of all abilities, gaming interest, and location, independent of their platform of choice…. Players will be able to effortlessly create, host, and compete in all of the best branded mobile esports tournaments available anywhere.

With Esports Mogul's share price sliding today, could today's news have already been largely priced into the stock?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Broker looking at the share price.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A smiling woman at a hardware shop selects paint colours from a wall display.
Broker Notes

After its strategy day, what does Macquarie think Wesfarmers shares are worth?

Let's see what the broker is saying about this blue chip.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »