As investing experts seeking to demystify the stock market, we receive frequent inquiries on how to buy Epic Games stocks. While Epic Games stock is not yet available on the market, our guidance will equip you with the knowledge to act fast once the company finally launches its inevitable blockbuster initial public offering (IPO).
Summary
Epic Games, the developer of the popular Fortnite game, is currently a private company owned by founder Tim Sweeney, Tencent, Sony, and others. Epic Games stock is not yet available to purchase on public markets. There are no announced plans for an initial public offering (IPO), but rumors speculate it could happen within the next few years.
Investors interested in Epic Games’ potential should consider buying shares of Tencent, which owns 40% of Epic, or video game competitors like Electronic Arts. We also outline what to know about Epic’s financials and the process for investing should the company ever go public.
What is Epic Games Stock
Epic Games is a Cary, North Carolina-based videogame and software developer best known for Fortnite Battle Royale. Other popular Epic titles include Gears of War and Infinity Blade.
The company also built Unreal Engine, a leading real-time 3D creation platform for gaming, film, architecture, automotive design and more. Epic sells its technology solutions to creators across industries.
While tremendously successful, raking in billions from Fortnite microtransactions, Epic Games remains privately held, so its stocks aren’t available on the market yet.
Is Epic Games Publicly Traded?
As of this early, 2024, Epic Games had not completed an initial public offering (IPO). Because it isn’t publicly traded, investors can’t buy the company’s shares on a stock exchange with their brokerage account. A company that issues shares that are publicly traded, meaning the shares are available for anyone to buy and sell on the stock market.
Step-by-Step Guide to Buy Epic Games Stocks
Here’s what to know if Epic Games ever launches an IPO and goes public:
Step 1: Choose an Online Broker
We recommend Fidelity as a reputable brokerage platform for investing. Open an account to access trading and all the research tools you’ll need.
Step 2: Analyze Epic’s Financial Reports
Once public, Epic must file detailed financial statements. Use these to value company shares and research profitability, revenue growth, cash flow, debts and more.
Step 3: Determine Your Position Size
Decide how many shares to buy based on your personal investing strategy and risk tolerance.
Step 4: Place a Market Order
Enter the stock ticker symbol after the IPO to place a buy order for Epic Games stock. Specify details like price/share and order type.
Step 5: Monitor Your Investment
Frequently check in on your Epic Games shares. Read latest gaming industry news for anything that may impact performance.
Step 6: Adjust Your Holdings
As needed, you can choose to add to your position or sell some shares based on Epic’s stock fluctuations and your investing goals.
Alternatives for Investing in Epic Games
While you wait and see if Epic Games ever goes public, consider these options:
Buy Tencent Stock
Tencent Holdings (TCEHY), the Chinese tech conglomerate, owns 40% of Epic Games. Purchasing Tencent shares allows exposure.
Invest in Video Game Stocks
Top gaming stocks include Electronic Arts (EA), Activision Blizzard (ATVI), Take-Two Interactive (TTWO) and Roblox (RBLX).
Should You Invest in Epic Games?
Before buying Epic Games stock, weigh growth opportunities against risks like unprofitability. Epic reportedly loses hundreds of millions a year, though revenue tops $5+ billion.
Epic Games’ revenue
According to Sacra, Epic Games generated $5.2 billion in revenue in 2022. That included sales within Fortnite and revenue from its Unreal gaming engine. Epic Games reported that PC players spent $820 million on the Epic Games Store in 2022.
Epic Games’ Valuation
Epic Games raised $2 billion in additional funding in early 2022 when Sony and Kirkbi each invested $1 billion into the company to fund building a metaverse for kids. That latest funding round gave the company a valuation of $31.5 billion.
Consider watching from the sidelines until the company demonstrates a path towards profitability. But the gaming sector could still deserve a place in a diversified portfolio.
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Conclusion
In conclusion, Epic Games stock is not yet available to purchase since the gaming juggernought remains a private company. However, investors have a few options to gain exposure to Epic’s upside potential even before any IPO. Buying shares of Tencent provides some access as the Chinese tech giant owns 40% of Epic. Investing in other public video game makers also allows capitalizing on the broader growth of the interactive entertainment sector. When Epic finally goes public, be sure to evaluate the post-IPO financials against valuations to make informed investment decisions.
FAQs
When will Epic Games go public?
There is no set IPO date yet. But given massive interest in the gaming sector, investors speculate Epic could file for an IPO within the next few years.
What will Epic Games opening stock price be?
It’s difficult to predict. However, at Epic’s last valuation of $31.5 billion in early 2022, the IPO share price would likely be $100+.
Who owns the most Epic Games stock?
Founder & CEO Tim Sweeney owns over 50% of Epic Games. Chinese tech giant Tencent owns 40% after investing $330M in 2012 for a 48% minority stake.
How can I buy Epic Games stock?
Epic Games isn’t public yet. Investors can buy Tencent stock now for exposure or wait to directly invest when Epic completes an eventual IPO. Follow our guide once shares become available.
