How to buy Twitch shares (2024): investing analysis

Twitch is the largest streaming platform for e-gaming. In this article, you can read how & where to buy Twitch shares. I also discuss the weaknesses & strengths of Twitch stocks.

How to buy Twitch shares?

Twitch is part of Amazon. Therefore, it is not yet possible to buy individual Twitch shares, but this may change in the future. You can invest directly in Twitch with the following stockbrokers:

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Avatrade buy sharesSpeculate on price increases and decreases of Twitch with a free demo!

When buying Amazon shares, it is important to properly analyse all their businesses. This is because you are not only investing in Twitch, but in all of Amazon’s other businesses as well. Twitch’s performance therefore only determines a tiny part of the Amazon share price.

What are the strengths of Twitch stocks?

  • Dominance: Twitch is the largest livestreaming service in the world and is hugely popular for e-sports.
  • Growth potential: Twitch is expanding its offering by streaming music concerts and other events.
  • Collaboration: Twitch is part of Amazon, benefiting from the company’s other branches, such as Amazon Web Services (AWS).
  • High engagement: the platform attracts users with a high level of engagement, which is attractive to advertisers.

What are the risks of investing in Twitch?

  • Dependence on streamers: people use Twitch because they want to watch their favourite streamer. When streamers switch to another platform, the company may lose its customers.
  • Strong competition: companies like YouTube, Facebook and Microsoft are all fighting for the attention of online consumers.
  • Limited revenue: the company’s revenue comes from advertisements and subscription sales. The question is whether this is enough for the company to continue to grow.
  • Regulatory risks: live-streaming can lead to regulatory risks such as censorship and content restrictions. Censorship can then drive users away to other platforms.
  • Risky content: Twitch has recently had problems with ‘adult content’, extremism and hate content. This could damage the company’s reputation and put pressure on its stock price.
  • Copyrights: it is difficult for Twitch to check whether all streams comply with copyright rules. When this is not the case, Twitch can be sued.
  • Blockades: the governments of China, Slovakia, and Iran block Twitch. If more countries block Twitch, it could reduce the company’s profitability.

About Twitch

Twitch is a live streaming platform for e-sports that was founded in 2011. The company has skyrocketed in value recently and now has over 150 million monthly active users.

Users can stream live gameplay and thus communicate directly with their followers.

Buy shares Twitch

How to invest in Twitch shares?

Before you can invest in shares, you first need an account with a reliable stockbroker. A stockbroker allows you to exchange money for shares.

After depositing money in your broker account, you can buy Twitch shares right away. Within the order screen, enter the amount you want to invest and press buy to send the order to the stock exchange.

What are Twitch’s biggest competitors?

  • YouTube: YouTube is probably Twitch’s biggest competitor, with 2.3 billion monthly visitors.
  • Discord: Discord is also widely used by gamers. Although the functionalities are a bit different, there are also many similarities.
  • Netflix: Netflix is also considering dipping their toes in the gaming industry.
  • OnlyFans: this website is known for its adult videos, but is also increasingly used for streaming gaming footage.

What are alternative investments for Twitch?

You could also consider an investment in the following stocks:

  • Activision Blizzard
  • Electronical Arts
  • Take-Two Interactive
  • Capcom
  • Zynga

By investing in these stocks, you invest in the developments on the gaming industry. Always spend enough time researching the business activities and developments within these companies.

Analysis: should you buy Twitch shares or not?

Investors wonder if they should invest in Twitch shares. At the time of writing, Twitch is still the dominant player in e-sports. Gaming is also becoming increasingly popular, so this is still a growing market.

However, it is important to keep a close eye on Twitch’s market share. Competitors can take market share away from Twitch. When investing in Twitch, it is therefore wise to monitor what the streamers are doing. People come for the streamers and when they switch all together, it can put pressure on Twitch’s share price.

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