Why you should invest in Corsair Gaming Stock
An overview of my next Life-Changing Stock Pick
The gaming industry is growing bigger by the day
PC gaming, driven by its 1.3 billion players, will grow +4.8% year on year to $36.9 billion in 2021
Considered to be one of the fastest-growing industries on the planet, online gaming has exploded over the years.
Just a decade ago, the gaming industry was bringing in less than $60 Billion in revenue, and now we are forecasting over $200 billion in revenue by 2023.
What is Corsair Gaming?
Founded in 1994 and went public in 2020.
CRSR is a developer and manufacturer of high-performance tech gear for gamers or anyone looking for well-built pc components and equipment.
Products they offer:
iCUE — lets you fully synchronize the RGB lighting on all your compatible CORSAIR devices for a setup-wide light show beyond compare.
- CPU Coolers
- SSDs and USB Flash Drives
- Power supply units
- Ambient lighting
- Green screen
- Stream Deck
They also sell pre-built Gaming pc and sell apparel. Corsair also owns an interesting service that is called Gaming Sensei, which consists of gaming training and coaching 1–1.
Loyal fan base
Corsair has been booming for the last few years. If you go online and check gaming youtube videos, you will see that for every 10 gamers, 7 of them own a Corsair product.
Partnership with streamers
They have a global team of influencers and gamers promoting and bringing in new audiences. Some of them are:
- Team Dignitas- https://dignitas.gg/
- BajeeraWoW — https://www.twitch.tv/bajheera
- CyborgAngel — https://www.twitch.tv/CyborgAngel
- VoyBoy — https://www.twitch.tv/voyboy
- Summit1g — https://www.twitch.tv/summit1g
- LoserFruit — https://www.twitch.tv/loserfruit
Very focused on gaming
As they stated, they don’t create products for offices. Their focus is on creating modern, ‘’wow’’ products that give the best performance for gamers without compromising the quality of materials.
Taking a look at the balance sheet, income statement, and cash flow of Corsair gaming company, we can see they have a very healthy growth rate.
From 2018–2019 increased by 15.68%.
From 2019–2020 Total revenues increased a whopping 43.23%.
While revenue tripled from 2019–2020, their Cost of revenue went from 15.82% to an increase of 34.51%.
From 2018–2019 increased by 15.15%
From 2019–2020 increased by 69.92%
Gross profit quadruples from 2019–2020 while keeping expenses pretty low.
From 2018–2019 increased by 26.59%
From 2019–2020 increased by 21.43%
Total debt is the most interesting part,
From 2018–2019 they had an increase of 17.89%, but from 2019–2020, they had a decrease of 41.93%
Operating Cash Flow
In 2018 they were on a negative free cash flow, and then boom. From 2019 to 2020, they had an increase of 140% of free cash flow.
CRSR went public last year at a $14 price per share. As for today, it is holding the 29$. Personally, I am dollar-cost averaging, and whenever I see it at a good buying area, I add bigger positions.
Buying areas to take into consideration when adding to your portfolio are $27.00, $21.00, $14.00
If we look at CRSR competitors, the average prices for the gaming stocks are between $80–$150. So, there is so much upside for this company.
The 8 analysts offering 12-month price forecasts for Corsair Gaming Inc have a median target of 47.50, with a high estimate of 55.00 and a low estimate of 37.00.
Disclaimer: This is not financial advice, I am just a guy with a laptop sharing his opinions and experience. This is for entertainment purposes only. Always Do your own research before investing.