Hi there,
ESE has certainly benefited from the online boom in Esports. I'd however exercise caution here as the company's stock price as shot up significantly, and it is likely to be highly volatile. One of the reasons I personally avoid these types of stocks (outside of the fact it is being traded on pure momentum) is because it generates very little revenue. It only generated 138K last quarter, and hasn't even reached $1M in sales, yet it is trading at a market cap of ~$60M.
Furthermore, since it does not generate any meaningful revenue, it does not generate cash flow. Why is this important? Because the company is likely going to need to issue shares to maintain operations. Through the first 9 months of the year, it burnt through ~900K in cash for operations. It recently announced a private placement for $2.5M at $1.10 per share so that should keep it afloat for a while based on historical spend. However, the company is aggressively expanding.
This is not to say the company won't succeed - it certainly can. The point, is that we are very early in the game here and there is no proven business model. The company does have aggressive targets, such as being cash flow positive by end of next year and doubling revenue. Personally, there appears to be a disconnect because even if it generates a $1M in revenue, which would be well above 100% of 2020's pace - it is burning through cash at a higher clip than revenue. If they achieve this, I will be impressed and it will be a testament to the company's management team.
Bottom line - early stages, expect considerable volatility and it is only for those with a high risk tolerance.
Mat