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 users consumed 20.8 billion hours of content in 2024. Almost three-quarters of viewers are between the ages of 16 and 34.
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 +3.27%)(GOOGL +3.17%) at the time. Vox reported that Twitch ultimately went with Amazon, believing the move would provide it with more independence and support.
When will Twitch IPO?
Twitch has no plans for an initial public offering (IPO). It's a subsidiary of Amazon (AMZN +1.74%), 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 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 less than 21 billion in 2024 after peaking at 24 billion in 2021, the Wall Street Journal reported.
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.
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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.
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