How to Buy Discord Stock

Social media has come a long way since MySpace was introduced in 2003. The original social media platform was all but replaced by Facebook, which launched in 2004, and then Twitter, which made its debut in 2006. 

There are now specialized platforms for professionals, such as LinkedIn, along with an array of private and group messaging apps. Examples include Kik, Line, Messenger, Skype, Snapchat, Telegram, Viber, WeChat, and WhatsApp.

While these messaging apps all have some elements in common such as the ability to connect with other users individually and as a group, each offers slightly different features. That means user demographics are also slightly different, and some demographics are better served than others.

That fact left room for another type of messaging app – Discord – which was created in 2015. It is rapidly increasing in popularity because it solves a problem that has long plagued its target audience.

As more users join Discord and the app moves up the social media ranks, investor interest has increased. After all, other social media stocks saw significant growth and strong returns in their early years, and there is reason to believe Discord stock will do the same. 

The trouble is that Discord isn’t listed on any exchange, so that leaves investors with a big question: how to buy Discord stock? 

How Discord Got Started

Discord founders Jason Citron and Stan Vishnevskiy are long-time gaming enthusiasts, and they both noticed the same obstacle in their gaming experience. It was hard to communicate with other gamers while using online gaming systems. This impeded their ability to enjoy the close relationships that often form in online worlds. 

The two joined forces to develop a messaging app that made communication a top priority. Their goal was to make cultivating friendships easier through a platform that facilitated the same feelings of togetherness found in gaming. 

Like most communication apps, Discord offers chat and voice options, as well as file-sharing capabilities. However, it has a variety of unique features that other options can’t match. For example, Discord works with any platform, including iOS, Android, Windows, Xbox, and PlayStation. It can also be synced with other popular apps like YouTube, Patreon, Twitch, and Spotify. 

With that said, Discord users generally agree that the platform’s biggest advantage is the ability to share screens and have real-time conversations while gaming.

In addition, the app has impressive sound quality – and since poor VoIP technology can be intensely frustrating, Discord’s superior performance in this area makes it a favorite. 

Though Discord’s first users came from the gaming world, it has evolved to include users with all sorts of interests. That’s due, in part, to the fact that gamers like Discord’s features so much that they have introduced the platform into other forums. 

Discord is made up of “servers” where communities form, and participants can feel a sense of belonging in the vast digital universe. There are servers for a variety of interests – everything from gardening to education – and Discord is now starting to make inroads in the world of business. 

Today, Discord has 150 million monthly active users who interact through one or more of the platform’s 19 million servers. Every day, four billion minutes of conversation take place through Discord, and that number is growing – fast. 

Which Company Owns Discord?

It’s a common misconception that Discord is owned by another organization, such as a holding company or a tech industry leader. After all, acquisitions and mergers are part of the landscape, as evidenced by Facebook’s acquisition of Oculus, WhatsApp, and Instagram.

On several occasions, it was widely reported that Discord was on the verge of announcing a sale. One of the rumors that gained traction was a potential acquisition by Microsoft. However, none of the acquisitions materialized, and analysts suggest that Discord is more likely to choose IPO over sale in the end. 

This theory is based on Discord’s mission – and the founders’ original vision – of creating an inclusive community. At the moment, Discord is a universal communication platform – it can be used between Apple and Android products, for example. If acquired, it would probably be limited to communication within platforms owned by the parent company. 

How Profitable Is Discord?

Because Discord does not trade on public exchanges, many financial details aren’t shared outside the company. Nonetheless, enough information is available to demonstrate that Discord is on the rise. 

Though the basic Discord platform can be accessed at no charge, additional features are available for a fee. The company makes money from subscription services, the sale of virtual “stickers,” and other add-ons.

Discord generated revenues of $130 million in 2020, up from approximately $45 million in 2019. In 2020, Discord was valued at $7 billion – a figure that has more than doubled in just over a year. 

To date, it does not appear that Discord is turning a profit, but most analysts are unphased by that fact. It is common for tech companies to operate at a loss in the early stages, even when they are considering an IPO. 

Is Discord Going to Go Public?

So, the big question is, will Discord go public? The answer is very likely yes – and soon. Though no date has been set, some believe that an announcement is imminent. After all, the owners have turned down opportunities to sell the company at a generous price on several occasions, which indicates that an acquisition is not in the cards. 

While Discord can still attract private investors to get the capital needed for further expansion, its size is beginning to make that sort of fundraising unwieldy. It is more likely that Discord will follow in the footsteps of Bumble, Etsy, Match, Pinterest, and Zynga, all of which went the public trading route.  

How To Buy Pre-IPO Discord Shares

Investors who meet certain qualifications may be able to buy pre-IPO Discord shares. That could be profitable if Discord stock goes up as expected in the first few days of public trading. While it isn’t possible to buy pre-IPO Discord shares on the public market, there are trading platforms that specialize in connecting eligible buyers with pre-IPO stock. 

Some of the best-known options include: 

  • EquityZen – an online platform that acquires pre-IPO shares from employees, early investors, and similar, then sells them to investors who meet certain criteria. It is important to note that the minimum trade on EquityZen is generally $10,000, and it can be substantially higher depending on the stock. 
  • Forge Global – the largest pre-IPO platform also has the largest minimum trade requirement: $100,000. That can put pre-IPO shares out of reach for most investors. However, those who can meet eligibility criteria may find pre-IPO Discord stock here. 
  • SecFi – This platform caters to employees of non-public companies who wish to divest their stock. Outside investors who meet eligibility criteria can purchase pre-IPO Discord shares when available. 

For most investors, acquiring pre-IPO stock is neither practical nor possible. Fortunately, that doesn’t entirely eliminate the possibility of being a part of Discord’s growth. 

How To Invest In Discord IPO

When an IPO date is finally announced, there may be limited opportunities to invest in the Discord IPO. Essentially, a certain number of shares will be offered to buyers who meet stringent qualifications, and purchases are made through established brokerage accounts.

Often, investor qualifications are related to total assets and/or account balances. For example, TD Ameritrade has a minimum balance requirement of $250,000, and Charles Schwab permits IPO participation for those with balances of $100,000 or more. 

The good news is that once Discord does start trading on a public exchange, buying Discord stock is easy. It will be available through most online and traditional brokerage firms, so it is a simple matter of creating or logging into your account, selecting Discord shares, and placing an order. 

The biggest potential pitfall is the strong possibility that share prices will be extremely volatile when trading begins. For that reason, a limit order may be a better choice than a market order to ensure that there are no surprises when the order is executed. 

Can Discord Beat The Competition?

Aside from the risks associated with any IPO – and the roller-coaster volatility that typically marks the early months of trading – the biggest risk Discord investors will face is the possibility that the platform will never pull enough market share away from the industry leaders to be truly successful. 

Certainly, Discord has quite a way to go before it matches up with the current industry leaders. For perspective, WhatsApp has more than two billion monthly active users.

However, Discord’s focus on community and creating a sense of belonging set it apart from its social media peers. That’s important during this critical time when larger organizations are under fire for allowing harmful content to flourish. 

How To Buy Discord: The Bottom Line

In terms of how to buy Discord stock, the bottom line is this: buying pre-IPO Discord stock isn’t always practical or possible for the average investor. In the meantime, there are opportunities to invest in other tech startups that recently held IPOs or otherwise began trading publicly. Examples include these ten that had successful launches in 2021: 

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.