June 8, 2024

How to Buy Valve Stock

Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. This compensation may impact how and where products appear on this site. You help support CreditDonkey by using our links. (read more)

Can't buy Valve stock? No problem. Explore these alternative options for gaining exposure to Valve's popularity and the gaming industry.

Valve is an American video game developer, publisher, and digital distribution company. You might have heard of some of their products like Steam and the Steam Deck. They're also the developers behind popular games like Dota 2 and Counter-Strike.

Looking to invest in Valve? Unfortunately, directly owning stock isn't an option.

However, there may be a few investment alternatives you can consider. These include secondary platforms, pre-IPO investments, and alternative companies.

Can you buy Valve Stock?

Unfortunately, you cannot buy stock of Valve Corporation. Since it's a privately held company, it doesn't offer its stock publicly.

Although you can't directly invest in Valve, other options can allow you to tap into the gaming industry's growth. One way you could do that is through indirect investments.

How to Indirectly Invest in Valve

Since you can't directly invest in Valve, other investors might choose to invest in its partner companies. These include hardware manufacturers like NVIDIA and AMD, which benefit from increased demand driven by Steam's popularity.

This can be a way to indirectly gain exposure to Valve's potential growth, lessening the risks associated with a private company.

How do you prefer to gain exposure in the video game industry?

NVIDIA and AMD stocks are publicly traded, so you can buy them using any brokerage or trading app. There are no special qualifications needed.

Here are a general few steps you can take to start your investment with your preferred brokerage or trading app:

  1. Create an account and fund it.
  2. Search for 'NVDA' or 'AMD'.
  3. Decide how much you want to buy.
  4. Place your order

Indirectly investing is just one way you can gain exposure to Valve's success. Alternatively, you can learn more about how pre-IPO investing works.

How to Buy Valve Stock Before the IPO Date

Valve has no plans to go public or when it'll have its IPO. However, Valve stock pre-IPO is listed on EquityZen and Forge Global.

Just note that the availability of private company shares on secondary platforms can be limited, and it is not always guaranteed, nor readily accessible to all investors. Be sure to check their websites for the latest updates.

It's also important to note that requirements may differ among marketplaces. These platforms are generally only open to accredited investors and the minimum investment can be high (for example, EquityZen requires a $10,000 minimum).[1]

If you meet all the requirements, here are a few simple steps you can take to access secondary platforms:

  1. Sign up with your chosen platform (e.g. EquityZen).
  2. Verify your accreditation.
  3. Browse through the available offerings.
  4. Fund your account and buy shares.

Why Invest in Valve?

  1. Strong track record and brand
    Valve boasts a strong track record of success in the gaming industry. Steam, its flagship platform, is the dominant PC gaming marketplace. It reported over 31 million peak of active users as of December 2023. This consistent performance suggests a potential for continued growth and profitability.[2]

    Additionally, Valve has created several successful game franchises like Half-Life, Counter-Strike, and Dota 2.[3] This consistent performance suggests a potential for continued growth and profitability.

  2. Diversified revenue streams
    With Valve's Steam alone, it offers digital game sales, in-game microtransactions, and hardware sales (Steam Deck), providing multiple income sources and reducing reliance on any game's success.

  3. Growth potential in the gaming industry
    The global gaming market is expected to continue expanding, with digital distribution like Steam playing a key role. Investing in a leader in this space could benefit from this broader trend.

  4. Innovation and future prospects
    Expanding into new markets like VR and handheld gaming could help Valve diversify its revenue streams and reduce its reliance on traditional PC gaming. This could make the company less vulnerable to downturns in specific markets and more attractive to investors seeking stability.

What Is Valve's Valuation?

Valve's latest valuation, as of March 2024, is estimated at $6.9 billion, based on Bloomberg calculations and insights from Michael Pachter, an analyst at Wedbush Securities.[4]

Being a private company, Valve isn't bound by the same stringent disclosure requirements as publicly traded companies, limiting the availability of detailed financial information to the public.

What type of gaming company has the most growth potential?

Alternatives to Valve Stock

There are also other publicly traded companies that lead the way in the gaming industry. You can buy their stocks to gain exposure to the industry's growth.

  1. Microsoft (NASDAQ: MSFT)
    Microsoft has been a major player in the gaming industry for decades, with its Xbox consoles and Game Pass subscription service competing directly with Valve's Steam platform.

    The company's strong performance in 2023 can be attributed to factors like the continued success of its cloud computing business (Azure) and the release of well-received games like Starfield and Redfall.

    Learn more about How to Buy Microsoft Stock in secondary markets.

  2. Roblox (NYSE: RBLX)
    Roblox is a cloud-based gaming platform that allows users to create and play their own games.

    Roblox's full-year revenue reached $2.8 billion in 2023, up by 26% from 2022, and its Daily Active Users (DAUs) reached 68.4 million.[5] The platform has experienced explosive growth in recent years, especially among younger demographics.

    Learn more about How to Buy Roblox Stock in secondary markets.

  3. Sony (NYSE: SONY)
    Sony is a Japanese multinational conglomerate corporation that produces various electronic products, video games, entertainment, and financial services.

    It is another major player in the gaming industry, with its PlayStation consoles competing directly with Valve's Steam Deck. The company's stock has performed well in 2023, boosted by strong sales of the PlayStation 5 and successful exclusives like God of War: Ragnarok.

Bottom Line

You cannot directly buy stocks from Valve because it is still a private company. However, it is possible to invest indirectly through its technical partners such as NVIDIA and AMD.

Another option is to invest in other major gaming industry players such as Microsoft, Roblox, or Sony. It may be worth noting that Valve's owners or founders were once Microsoft employees.

It is always advisable to conduct thorough research or seek professional financial advice before making any investment decisions.

References

  1. ^ EquityZen. FAQ: What's the minimum investment size?, Retrieved 9/28/2023
  2. ^ Valve. Charts Overview, Retrieved 12/29/23
  3. ^ Valve. About Us, Retrieved 12/29/23
  4. ^ Bloomberg. Gabe Newell Net Worth Summary, Retrieved 3/13/2024
  5. ^ Roblox. Roblox Reports Fourth Quarter and Full Year 2023 Financial Results, Retrieved 3/13/2024

Miel Ysabel is a research analyst at CreditDonkey, a personal finance comparison and reviews website. Write to Miel Ysabel at miel.sanculi@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Subscribe to CreditDonkey: Get updates on the latest deals and keep up with the best money moves.
Your privacy is important to us. Unsubscribe anytime

Equitybee

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
Subject to availability. Investments involve risk; Equitybee Securities, member FINRA

How to Invest in Private Companies

Investing in private companies can likely yield high returns, but they're often inaccessible. So what are your options? Read on.
Invest money and build wealth. Sign up to get our free email newsletter.

About CreditDonkey
CreditDonkey is a personal finance comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2024 CreditDonkey Inc. All Rights Reserved.