How to Buy Valve Stock
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.
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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.
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:
- Create an account and fund it.
- Search for 'NVDA' or 'AMD'.
- Decide how much you want to buy.
- 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:
- Sign up with your chosen platform (e.g. EquityZen).
- Verify your accreditation.
- Browse through the available offerings.
- Fund your account and buy shares.
Why Invest in Valve?
- 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.
- 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. - 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. - 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.
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.
- 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. - 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. - 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
- ^ EquityZen. FAQ: What's the minimum investment size?, Retrieved 9/28/2023
- ^ Valve. Charts Overview, Retrieved 12/29/23
- ^ Valve. About Us, Retrieved 12/29/23
- ^ Bloomberg. Gabe Newell Net Worth Summary, Retrieved 3/13/2024
- ^ 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.
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