Twitch is a wildly popular video streaming service that has become a household name for gamers and video content enthusiasts alike.
While Twitch may not be a publicly-traded company, it is still possible to invest in the platform indirectly through Amazon, its parent company.
In this article, we’ll discuss the steps to invest in Twitch and explore alternative investment options in the video game and streaming industries.
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Can You Invest in Twitch Directly?
As mentioned earlier, Twitch is not a publicly-traded company, so it is not possible to buy shares of Twitch directly. However, you can invest in Twitch indirectly through Amazon, which acquired Twitch in 2014. Amazon is a publicly-traded company, and buying shares in Amazon will give you indirect investments in Twitch.
Owning Amazon shares also gives you exposure to several other subsidiaries, such as:
- Brilliance Audio
- Whole Foods Market
To purchase Amazon shares, you will need to open a brokerage account with a firm that offers trading in the NASDAQ stock exchange. Once you have opened an account, you can place an order to buy shares in Amazon by searching for the company’s ticker symbol (AMZN) and selecting the number of shares you want to buy.
Alternative Investment Options
If you are looking for alternative investment options in the video game and streaming industries, here are a few companies to consider:
Capcom: Capcom is a Japanese video game developer and publisher known for producing popular games like Resident Evil and Street Fighter. The company’s shares are traded on the Tokyo Stock Exchange and the OTC markets.
Zynga: Zynga is a mobile game developer known for producing games like FarmVille and Words With Friends. The company’s shares are traded on the NASDAQ stock exchange.
Take-Two Interactive: Take-Two Interactive is an American video game developer and publisher known for producing popular games like Grand Theft Auto and NBA 2K. The company’s shares are traded on the NASDAQ stock exchange.
Activision Blizzard: Activision Blizzard is an American video game developer and publisher known for producing popular games like Call of Duty and World of Warcraft. The company’s shares are traded on the NASDAQ stock exchange.
Electronic Arts: Electronic Arts is an American video game developer and publisher known for producing popular games like FIFA and Madden NFL. The company’s shares are traded on the NASDAQ stock exchange.
These companies are worth considering if you are looking to invest in the video game industry.
Alternative Streaming Platforms
While Twitch remains the dominant player in the video game streaming industry, there are other platforms worth considering:
YouTube: YouTube is the largest video streaming platform in the world, with over 2.3 billion monthly active users. While YouTube’s primary focus is not on video game streaming, the platform does offer live streaming capabilities, and many gamers have found success streaming on the platform. You can check out our guide on how to invest in YouTube.
Discord: Discord is a communication platform that allows users to create chat groups and voice channels. While Discord is not primarily a streaming platform, users can still stream live video to their friends or followers through the platform.
Netflix: Netflix is a video streaming platform that is exploring the possibility of entering the gaming industry. While it is unclear what form this will take, Netflix’s large user base and established brand make it an interesting potential competitor in the video game streaming space. Check out our guide on how to invest in Netflix.
OnlyFans: OnlyFans is a platform that is primarily known for adult content, but it also offers live streaming capabilities. While OnlyFans is not a direct competitor to Twitch, the platform’s popularity with certain audiences could potentially draw users away from Twitch.
Factors to Consider When Investing in Streaming Companies
Before investing in any video game or streaming company, there are a few factors to consider:
- Revenue: It is important to look at a company’s revenue when considering investing. Revenue growth is a key indicator of a company’s success, and it can help you determine whether a company is worth investing in.
- Competition: The video game and streaming industries are highly competitive, and it is important to consider a company’s competition before investing. Look for companies that have a competitive advantage, such as a strong brand or a unique product or service.
- Management: Strong management is important for any company, and it is especially important for video game and streaming companies. Look for companies with a strong management team that has a track record of success.
- Growth potential: Look for companies that have strong growth potential. This can include companies that are expanding into new markets or developing new products or services.
- Financial health: Finally, it is important to consider a company’s financial health before investing. Look for companies with strong financials, including a healthy balance sheet and a solid cash position.
The Bottom Line
While investing in Twitch directly is not possible, there are still ways to invest in the gaming and streaming industries. Indirect investment through Amazon, as well as other alternative options such as Capcom, Zynga, Take-Two Interactive, Activision Blizzard, and Electronic Arts, can provide exposure to the industry.
It is important to do your own research on these companies and consider their financial performance, growth prospects, and competitive landscape before making any investment decisions.
Moreover, other streaming platforms like YouTube, Discord, Netflix, and OnlyFans are worth keeping an eye on as potential competitors to Twitch.
With the gaming industry and eSports continuing to grow, there may be many investment opportunities in this space in the future.