A stock that is listed as a "meme stock" does not necessarily mean that it's a poor investment opportunity. This Fool Live video clip was recorded June 25th by Anand Chokkavelu, chief growth officer at The Motley Fool. He explains Corsair Gaming (NASDAQ.CRSR) and why investors may not want to dismiss it.
Anand Chokkavelu says: Let's now move to the next, Corsair. This is a CRSR friend of mine. They make hardware and also support e-sports. They make everything from headsets and mice to computers. They also offer more advanced products like CPU coolers and chairs. I have actually looked through some of their products. I am tempted to buy one of their chairs. To support the chair, I wanted it to have a higher back. I have a lower one. It's anything that makes your gaming experience as enjoyable and high-tech as possible. They see a potential in content creators. That's why I was so excited when I first saw the chairs. You have a use for them. They are active in many markets where they are No. 1. or 2. 2 in many things in their creator and gamer peripherals. It's either No. 2 in keyboards; 3 in mice; 4 in headsets; 2 in streaming peripherals. No. No. 1 in memory, No. 2 in cases, and first in power supply units, first in cooling solutions. They have been in existence since 1994. They have a $3 billion market cap, 29% gross profit, and a one-year growth of 65%. We'll discuss this shortly. At 1.6 times sales, they have an interest rating. With a P/E ratio of around 20, it is profitable on both income and cash flow. Although it has some debt, the company seems to be able to manage its size. Logitech (NASDAQ LOGI) is a competitor that may be familiar to you. Logitech has twice as many sales and a higher net margin percentage than theirs. This suggests that even greater profitability can be achieved by scaling up. Logitech has seen great growth in the last year. Both Logitech and Corsair expect much lower growth in the coming year due to pandemic tailwinds. Logitech is expecting flat growth and Corsair expects flat double digits. Gaming accounts for about 11% U.S. internet and media activity. This is more than social media, and there are over 2.8 billion gamers around the world. It doesn't appear to be a major trend that's going anywhere so it's worth looking into. Logitech is another company I recommend. If you're interested Corsair, I would also recommend Logitech. You can compare the two.