The anime and manga markets are seeing a period of rapid global growth. Consequently, many investors are wondering whether anime stocks are a good investment. And if so, what are the best anime stocks to buy now? We took a look, and below is what we found.
Best Anime Stocks
Tencent Holdings ADR (OTCMKTS: TCEHY)
Tencent is a Chinese technology and entertainment conglomerate that trades in the United States over the counter (OTC).
The Chinese conglomerate is the largest publicly-traded company with a market cap of nearly half a billion dollars. The company is also China’s largest video game publisher.
It might be a big surprise that the first company on our list is Chinese, not Japanese. But unfortunately, there aren’t any Japanese anime production studios listed on the US stock exchanges.
Tencent is well aware of the potential of the Japanese film genre and has been acquiring companies in the industry since 2020.
That year, the company acquired a 20% stake in Marvelous Entertainment—a Japanese anime studio.
Since then, the company has made several other moves that expand its exposure to the notorious Japanese animated genre.
For example, in 2021, Tencent also invested in Kadokawa—a Japanese media conglomerate.
The Chinese government limits the number of Japanese anime titles released in the country.
Consequently, the move could open up additional markets for Japanese anime in China, which has experienced rapid growth in recent years.
Tencent paid a steep price for the acquisition, but it could offer attractive opportunities for the company. The nearly 7% stake in the Japanese media conglomerate set TCEHY back nearly $264 million.
Tencent had an impressive recovery at the start of the year, nearly doubling the price of its shares from October 2022 to January 2023.
However, it has since gone down by a bit but is still about 45% higher over its previous years’ price.
And of course, the company still has a long way to go before it retakes its $100 all-time high.
The Sony Group Corporation (NYSE: SONY)
The Sony Group Corporation is a Japanese conglomerate headquartered in Tokyo.
Their stock is listed as ordinary shares on the Tokyo Stock Exchange. But American investors can also invest in the company in the form of American Depositary Receipts (ADRs).
Sony ADRs are listed on the New York Stock Exchange (NYSE) and trade under the SONY ticker. The company is well known for manufacturing electronic products and game consoles like PlayStation.
But Sony is also involved with media and owns one of the world’s largest music publishers and film studios.
It would be nearly impossible for Sony not to get involved in anime, given its footprint in Japan.
In fact, Sony owns Crunchyroll, a major US anime licensor and one of the most visited anime streaming platforms globally.
Crunchyroll was funded in 1994 under the name of FUNimation. But the company rebranded itself in 2022 after acquiring an anime streaming service by the same name.
Their website ranks as the 553 most visited website globally and the 337 most visited in the United States. With an average of 84 million visits monthly.
Crunchyroll is seeking to build an anime empire, and it’s currently the world’s largest dedicated anime platform.
Nintendo ADR (OTCMKTS: NTDOY)
Nintendo is another Japanese company that makes its shares available to investors in the United States by offering ADRs. The ADR Nintendo shares trade over the counter (OTC).
We choose Nintendo partly due to their association with the most successful anime brand of all time—Pokémon.
Pokémon is the highest-grossing anime franchise ever. The company behind the anime characters stopped publicizing their total worth in 2019.
However, the animation franchise was already worth a whopping $71 billion by then.
Experts now estimate that the franchise could be worth over $100 billion in 2023—in real money, not Pokédollars!
Nintendo has been associated with Pokémon as they are the company that releases the famous video games.
But surprisingly, Nintendo doesn’t own the brand, although they own part of the company that produces the anime—the Pokémon Company.
Since the Pokémon Company is not publicly traded, owning shares of Nintendo is the closest thing to owning a share of the Pokéworld.
But Nintendo’s stretch into anime and manga doesn’t end with the Pokédex data.
The company’s consoles also offer a variety of manga and anime video games that satisfy every fan’s desires, including titles like Dragon Ball and Fire Emblem.
The stock touched its all times high in 2021 when it crossed the $16 mark. However, it has since fallen to about $10, but it has managed to hold its price this year.
Recent financial returns have been impressive, with the latest second quarter results showing 50% growth in revenue and 52% increase in net income.
Roku Inc (NASDAQ: ROKU)
Roku is in the business of manufacturing digital players for streaming services. The company is also in the business of licensing its software, where a plethora of different streaming choices can be found.
Among them, several channels offer audiences access to their favorite anime films and shows.
ROKU recently announced that the company had topped 70 million user accounts globally—a new record.
With so many viewers tuned in, there will surely be manga and anime fans among them.
Some of the channel options featured in ROKU that offer anime include:
- Crunchyroll – The internet’s leader in anime streaming
- HiDive – A popular anime network
- Hulu – Home of popular titles such as Naruto
- Netflix – Do we even have to explain this one?
- Pokémon TV – Another outlet for the cute critters
- Pluto TV, Tubi TV, and Crackle
ROKU is one of Cathie Wood’s favorite stocks and one that she continuously adds to her ARK funds. In fact, the stock makes up nearly 7% of ARK’s innovation ETF.
At one time, Roku used to trade above $400, but its stock price plummeted more than 80% last year. This year, it has recovered its value by about 10%.
The company announced that it would build its smart TVs on January 4th, 2023. An important move that will help the company
The possibility of growth in the cable-cutter sector could heighten as recessionary fears grow.
Cutting down a $100+ cable bill and replacing it with $10-$50 in streaming services is a painless way to save.
Many Americans might opt for this if the economy continues on a downtrend, which could ultimately benefit ROKU.
Are Anime Stocks a Good Investment?
Considering analysts’ growth expectations, anime stocks present a good opportunity for fans and investors.
Anime content has become increasingly popular worldwide, gaining significant traction in the market.
The anime industry has been growing rapidly and analysts believe it could continue to do so.
Experts project that the anime market could grow at a CAGR of 9.5% through 2029.
If so, it’s possible that the total industry market cap could double to nearly $50 billion by the end of the decade.
At this rate, investors could also see their investments follow a similar path.
But unfortunately, most pure-play anime stocks are not listed in the United States Stock Market. This makes it difficult for American investors to get direct exposure to anime stocks.
Most anime studios are in Japan and are listed on the Japanese Stock Exchange. Therefore, investors looking to gain exposure from the industry must instead seek alternatives.
For example, by investing in companies with a stake in the industry, like conglomerates, distributors, or manufacturers.
These alternative investment methods can provide exposure to the industry.
However, it’s important to remember that the performance of those stocks will not be fully correlated to the performance of the anime industry.
Fortunately, platforms that manage distribution could be a safer investment than studios.
Studios must continuously create engaging content to remain relevant, while distributors need to only buy it.
In our list, we named a few distributors, such as Roku (ROKU), Nintendo (NTDOY), and Sony (SONY).
But it’s worth noting that other distributors are worth researching such as Netflix (NFLX) and Amazon Prime (AMZN).
Now that you know more about anime stocks, you might consider adding one (or more) to your portfolio.
Anime Stocks FAQs
Can I Buy Stock in Anime?
You can buy stock in anime by investing in shares of studios, conglomerates, and distributors. Although unfortunately, most anime studios are publicly listed in Japan and not in the United States. There are also anime exchange-traded funds that can be used to buy stock in anime.
How Can I Invest in Japanese Stock?
The two ways to invest in Japanese stock are through exchange-traded funds (ETFs) or by opening a Japanese trading account. ETFs comprised of Japanese stocks are also traded in the United States. However, you might not be able to open a Japanese trading account without proof of nationality or residency.
Which Are the Best Anime Stocks to Buy Right Now?
- Tencent Holdings ADR (OTCMKTS: TCEHY)
- The Sony Group Corporation (NYSE: SONY)
- Nintendo ADR (OTCMKTS: NTDOY)
- Roku Inc (NASDAQ: ROKU)
- Mattel Inc (NASDAQ: MAT)
- Socialwire Co Ltd (TYO: 3929)
- SD Entertainment Inc (TYO: 4650)
- Broadmedia Corp (TYO: 4347)
- Broadcasting System of Niigata Inc (TYO: 9408)
- IG Port Inc (TYO: 3791)
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