Twitch is an interactive video live-streaming platform that focuses on gaming but also features music, sports, talk shows, and various other types of content. Twitch says its content attracts roughly 30 million viewers each day. Almost three-quarters of viewers are between the ages of 16 and 34.
Twitch is a subsidiary of Amazon (AMZN 1.52%), so you can't buy Twitch stock. But if you want to invest in Twitch, buying shares of Amazon will provide exposure to Twitch.
Is it publicly traded?
Is Twitch publicly traded?
Twitch is not publicly traded, but it's owned by Amazon, which is a publicly traded company. Amazon acquired Twitch for $970 million in 2014. Twitch reportedly fielded a $1 billion offer from Google parent company Alphabet (GOOG 2.5%)(GOOGL 2.65%) at the time. Vox reported that Twitch ultimately went with Amazon, believing the move would provide it with more independence and support.
IPO
When will Twitch IPO?
Twitch has no plans for an IPO. It's a privately held company that's been owned by Amazon since 2014.
How to invest
How to buy Twitch stock
It's not possible to buy Twitch stock since it is owned by Amazon. However, you can invest in stocks of similar publicly traded companies by following these four steps. Note that if you're looking to invest in an IPO company ahead of its stock market debut, you'll need to be an accredited investor and buy shares through a platform like EquityBee or Linqto.
Step 1: Open a brokerage account. You can open a brokerage account online in just a few minutes by providing your name and personal information (like your date of birth and Social Security number) as well as a few details about your employment, income, and net worth. Look for a brokerage that offers commission-free trades and low fees.
Step 2: Set your budget. Next, determine how much you can afford to invest. You typically want to pay off high-interest debts, like credit cards, and have at least a three- to six-month emergency fund before you start investing. You'll also need to decide whether to make a one-time investment vs. a recurring investment as part of a dollar-cost averaging strategy.
Step 3: Do your homework. Before you invest in any company, you should understand the basics, like its growth potential, its competitors, and how it makes money. Since it's not possible to buy Twitch stock, here are three alternatives to consider.
1. Amazon
Since Twitch is an Amazon subsidiary, buying shares of Amazon is the most straightforward way to invest in Twitch.
As of this writing, Amazon ranked No. 5 on the list of largest companies by market cap. It generated net sales of almost $575 billion in fiscal 2023. According to the Wall Street Journal, Twitch accounted for less than 0.5% of that revenue. So, while investing in Amazon makes you an investor in Twitch, make sure you're confident in Amazon and the other businesses it owns since Twitch barely moves the needle for Amazon's bottom line.
2. Alphabet
Google parent company Alphabet owns YouTube and YouTube Gaming, which is Twitch's main competitor. Like Twitch, YouTube Gaming allows users to stream themselves playing games for fun or competition.
YouTube ad revenue only accounted for 10.25% of Google's revenue in 2023, and it's safe to say that just a small fraction of that came from YouTube Gaming. But if you think Google's overall business is solid, buying shares could offer you exposure to its livestream gaming platform.
3. Tencent Holdings
Tencent Holdings (TCEHY -7.82%) is a Chinese internet and entertainment company whose services are used by more than 1 billion people worldwide. It makes some of the most popular video games on the planet. It's also the owner of Trovo, a livestreaming video platform similar to Twitch. Tencent is a highly profitable company that continues to grow its profit margins. Its gaming segment is growing once again, thanks in part to the recent release of the blockbuster Dungeon & Fighter mobile game, while the company continues to find ways to monetize its wildly popular WeChat app.
4. Place an order. If you've found a stock you want to invest in, enter its ticker on your brokerage's website or mobile app. Indicate the number of shares you want to buy or the dollar amount if your brokerage lets you buy fractional shares.
You'll also be asked whether you're placing a market order or a limit order. A market order will execute right away, regardless of the price, whereas a limit order is only placed if the price hits a threshold you specify. After you've provided the necessary information, you'll receive a confirmation order. If everything looks correct, place your order.
Profitability
Is Twitch profitable?
Twitch laid off about one-third of its workforce in January 2024. At the time, Twitch CEO Dan Clancy said, "I'll be blunt: We aren't profitable at this point."
Amazon doesn't publicly disclose revenue specifically for Twitch, but the Wall Street Journal reports that Twitch generated roughly $2 billion in advertising and commerce revenue in 2023.
Twitch saw its popularity skyrocket in 2018 due to the success of the game Fortnite and again during COVID-19 lockdowns. However, the platform has struggled as users have spent less on paid subscriptions and have also shifted their preferences toward shorter-form video content. The number of hours spent on Twitch globally dropped to 21 billion in 2023 after peaking at 24 billion in 2021, the Wall Street Journal reported.
Should I invest?
Should I invest in Twitch?
It's not possible to invest in Twitch unless you buy shares of Amazon, in which case Twitch will represent just a tiny fraction of your investment. But if you're interested in similar stocks, here's when you might want to invest vs. when you should probably steer clear.
Consider investing in video game stocks or streaming stocks if:
- You believe that customer preferences will continue to shift away from traditional TV toward streaming services and user-generated content.
- You believe gaming and streaming services have room to grow, especially in emerging markets.
- You want to invest in businesses that can capitalize on the growing spending power of Gen Z.
- You believe new technologies like artificial intelligence (AI), augmented reality, and virtual reality can improve the gaming experience.
- You want to invest in businesses with a recurring revenue model.
Video game stocks and streaming stocks are probably best avoided if:
- You already have a tech-heavy portfolio.
- You're looking for dividend income.
- You're worried about the impact of inflation or a potential recession on consumer discretionary spending.
- You believe government regulations targeted at issues like data privacy and smartphone/social media usage among teens could put pressure on gaming and streaming platforms.
- You believe that subscriber growth for gaming and streaming services has plateaued.
ETFs
ETFs with exposure to Twitch
Since Twitch is owned by Amazon, the only way to get Twitch exposure through exchange-traded funds (ETFs) is to invest in a fund that includes Amazon in its holdings. However, you can find ETFs that focus on gaming, streaming, and communications. Here are three ETFs that let you capitalize on these themes.
- Amplify Video Game Tech ETF (GAMR 1.1%): Founded in 2016, the GAMR ETF is the first ETF to directly focus on video gaming. Its 89 holdings include game developers, console and chip manufacturers and game retailers. The fund has a 0.75% expense ratio, which translates to $7.50 in fees on a $1,000 investment.
- Roundhill Streaming Services & Technology ETF (NYSEMKT:SUBZ): The SUBZ ETF invests in companies that offer video, audio, and livestreaming services, as well as companies that develop infrastructure or technology needed for streaming. The fund has 38 holdings and a 0.75% expense ratio.
- Vanguard Communications Services ETF (VOX 1.73%): The VOX ETF takes a much broader focus than the first two ETFs listed, investing in 117 companies involved in data transmission, cellular and wireless communications, and companies that provide various types of content. The fund has a 0.1% expense ratio, which amounts to just $1 in fees on a $1,000 investment.
Related investing topics
The bottom line on Twitch
Twitch has struggled in recent years after usage peaked during the pandemic. It isn't possible to invest exclusively in Twitch, but if you believe the business has potential despite its lack of profitability, you can get exposure to Twitch by investing in Amazon. You can also invest in similar themes by investing in a diversified company like Amazon or Alphabet, where livestream revenue accounts for a small share of the business, or by investing in companies that focus on gaming and streaming services.
FAQ
Investing in Twitch FAQ
Does Twitch have a stock?
No, Twitch doesn't have its own stock. Twitch is an Amazon subsidiary, which means that if you buy Amazon stock, you're investing in Twitch. However, Twitch accounts for less than 0.5% of Amazon's revenue.
Does Twitch have investors?
Since Twitch is owned by Amazon, its investors are Amazon investors. The largest institutional investors in Amazon are the Vanguard Group, BlackRock (NYSE:BLK), and State Street (NYSE:STT).
What is the stock symbol for Twitch?
Twitch isn't publicly traded. It's owned by Amazon, which trades under the stock symbol AMZN on the Nasdaq exchange. Amazon founder Jeff Bezos and CEO Andy Jassy are the largest individual shareholders.
Who is the owner of Twitch?
Amazon has owned Twitch since 2014. It paid $970 million to acquire the platform.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Robin Hartill has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Tencent. The Motley Fool has a disclosure policy.
