How to Buy Discord Stock
Can't wait to own Discord stock? Discord's IPO is yet to be released. But here are other ways of investing in Discord and owning pre-IPO shares.
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Who wouldn't know Discord? Discord has been the talk of the town in the last two years.
It can be grueling to ignore its popularity. The pandemic even caused its growth to 14 million active users PER DAY.
Understandably, every investor is on the lookout for Discord's IPO. But you do not have to wait to invest in Discord.
Check out these different ways of buying Discord stock.
Invest in High-Growth Startups
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Discord is a communication application originally designed for gamers. Gamers or players can send each other private messages, group messages, and video/audio calls. Its use expanded to include study groups, friend hangouts, and community talks. Discord's market now includes the working class, ages 25-34.
Is Discord On the Stock Exchange?
Discord is not yet available on the stock market. It remains a private company, which means people cannot invest in it through the stock exchange as of now.
Discord was expected to release its IPO in late 2021 or early 2022. But this was postponed because of the market condition.
Despite the delay, its users have been growing exponentially. As of 2023, it has 500 million current users.[1] This is 4x the recorded users in 2018.
While we wait for Discord's update, here are some alternatives to buying Discord stock.
Discord does not have a stock symbol or ticker symbol yet. Once it becomes public, its stock symbol will also become available.
How to Buy Discord Stock
Discord pre-IPO stock may be available in secondary markets.
Invest in High-Growth Startups
- Access Hundreds of Startups at Past Valuations
- Diversify Your Portfolio with High Growth Startups
- Invest in a Previously Inaccessible Asset Class
Why is it good to have pre-IPO stock? Having pre-IPO shares will give higher chances of profit when its IPO is released.
Private investors and company employee shareholders may sell their shares through the secondary market. EquityZen, Forge, and Freedom24 are some secondary marketplaces trusted by investors.
But if you are considering this option, note that pre-IPO shares are usually available to accredited investors only. Also, stock shares may not always be available, so you have to stay updated.
Here are simple steps to access secondary marketplaces.
- Sign up online with your chosen platform (Example: EquityZen).
- Undergo verification of your accreditation.
- Once verified, you can browse available offerings.
- Fund your account and buy shares.
Remember, requirements may differ among marketplaces. The minimum investment is also typically pretty high (for example, EquityZen requires a $10,000 minimum).[2]
There are also other ways to invest in Discord, indirectly. Read on.
Discord was expected to release its IPO in late 2021 or early 2022. But this did not push through due to market conditions. People are still waiting for its official IPO announcement.
How to Indirectly Invest in Discord
You can indirectly invest in Discord by investing in Sony (SONY) and Tencent Holdings Limited (TCEHY). These two companies are investors of Discord and are available on the stock market.
- Sony Interactive Entertainment (SONY)
Sony is one of the leading companies in the technology sector.While it is commonly known for electronic equipment and devices, Sony expanded to six business segments. This includes movies, recording music, cameras, banking, and others. Its last announced revenue was estimated to be $88 billion in 2021.[3]
Sony is available on the New York Stock Exchange.
- Tencent Holdings Limited (TCEHY)
Tencent Holdings Limited is considered one of China's Tech Giants. They run WeChat - China's top social and messaging app. And they are also known worldwide for their mobile games, such as Honor of Kings.They have been listed on Hong Kong Stock Exchange since 2004. U.S. investors can buy Tencent stock through ETFs, such as KraneShares CSI China Internet ETF (KWEB), which comprises China's largest internet companies.
How to buy Sony and Tencent stock
You can buy Sony (SONY) and Tencent Holdings Limited (TCEHY) using any brokerage or trading app. There are no special qualifications needed.
- Create or log in to your stock trading account.
- Fund your account. Note that some platforms require a minimum investment.
- Search the stock using the stock or ticker symbol:
- Sony (Ticker symbol: SONY)
- Tencent Holdings Limited (Easiest way to buy ETFs that contains Tencent, such as KWEB)
- Sony (Ticker symbol: SONY)
- Enter how many shares or the dollar amount you want to buy.
- Place the order.
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Sony and Tencent - not good enough? Stick around to see more reasons for buying Discord stock.
What is Discord's Valuation?
Discord is currently valued at $15 billion - doubling its $7 billion valuation in 2020. Dragoneer Investment Group led the 2021 funding round, raising $500 million. This was before its supposed IPO release.
Three years after its release in 2015, Discord surpassed its $2 billion valuation by raising a $150 million fund led by Greenoaks Capital.
And it accumulated more than $1 billion in its 11 years of raising funds.
Why Buy Discord Stock
Discord has been a smart investment for years. Its growing popularity, key company leaders, and expressed interest from giant tech companies added to its value.
Discord is a pool of all video and chat features. This makes it unique from other applications and has no other direct competitor.
Slack and Skype have the same function as Discord, but they focus on business and education.
Discord is also building its business framework for raising its revenue. It introduced Nitro Subscription, selling digital stickers, and offered games-forefront on its platforms. But most of its revenue comes from the Nitro subscription, from $9.99 per month to $99.99 per year.[4]
Last 2021, Discord gained attention by hiring former heads from Pinterest and Microsoft. The company assigned a new COO, Liz Hamren (former Microsoft executive) and Tomasz Marcinkowski as a finance operations head. He is a former head of finance at Pinterest.
In the same year, Bloomberg reported that Microsoft offered to buy Discord for an estimated $10 billion. Discord rejected this offer, along with the acquisition offers from Amazon and Twitter.
While waiting for the Discord IPO, you may consider other alternatives.
Jason Citron is the CEO/co-founder of Discord. He conceptualized Discord with Stanislav Vishnevskiy, founder of Guildwork.
ALTERNATIVES TO DISCORD STOCK
You can also consider investing in other leading voice-over-internet-protocol (VoIP) companies and instant messaging applications. Slack and Skype, like Discord, are good options.
- Slack (NYSE: CRM)
Slack is a widely used business app for communication among team members. It is a channel-based messaging that provides users different ways of messaging other members. Salesforce acquired it in 2021. Investment in Slack now has the ticker symbol CRM under Salesforce. - Skype (NASDAQ: MSFT)
Skype is a communication app with unique features like allowing landlines and calls. Though Skype is not publicly traded, you can invest in Skype through Microsoft. Microsoft, a leading software business, acquired Skype in 2011.
BOTTOM LINE
Discord has shown a high chance of going public since its initial announcement of IPO release. Despite the IPO postponement, Discord continuously had an expanding market. Moreover, giant tech companies also offered to acquire the company.
Good thing there are other ways to invest in Discord while we wait for its IPO. You can access the secondary market for IPO shares. Also, you have the option to invest indirectly through its key investors.
Invest in High-Growth Startups
- Access Hundreds of Startups at Past Valuations
- Diversify Your Portfolio with High Growth Startups
- Invest in a Previously Inaccessible Asset Class
Always remember that investment always comes with risks. If you are unsure, it's best to get investment advice from your financial advisor. Or you can also do your own research.
References
- ^ Statista Number of registered Discord users worldwide from May 2017 to January 2023, Retrieved 4/30/2023
- ^ EquityZen. EquityZen FAQs, Retrieved 04/28/2023
- ^ Statista Sony's total revenue from fiscal year 2007 to 2021, Retrieved 4/30/2023
- ^ Discord Nitro Localized Pricing FAQ, Retrieved 4/30/2023
Write to Miel Ysabel at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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