Discord invites investors to chat. The video game chat and communications company is reportedly considering an initial public offering (IPO). This isn’t the first time traders have heard rumors of the company going public with the previous ones making the rounds in 2021, but this time it might actually happen.
According to insiders, Discord is in early chats with banks about an IPO. The company has a reignited interest in going public as the Trump administration offers a more tech-regulatory landscape to companies.
The finer details of a potential offering are unknown, meaning traders don’t know when it will take place or what the potential price range for Discord shares will be. What traders do know is Discord was valued at more than $15 billion in 2021 after rejecting a $12 billion takeover bid from Microsoft (MSFT).
What Discord Can Offer Investors
Discord serves a huge market with 3.2 billion gamers around the world, which has created a $455 billion industry as of 2024. Discord currently only captures a fraction of that market with roughly 200 million gamers using its services. The company wants to grow this number while also extending its appeal to a wider audience outside of gaming. This has already attracted retail and crypto traders to the platform.
As for its business model, Discord is free to use but offers premium services to users. This allows them to unlock more features for managing interactions on the platform. That includes special options to enhance servers created by users to appeal to niche groups. In many ways, Discord is the modern successor to internet forums from the 2000s before social media homogenized how people interact online.
How to Invest in Discord Stock
Seeing as Discord isn’t publicly traded yet, investors can’t take a direct stake in it. Instead, they might consider buying shares of one of Discord’s investors. Sony (SONY) is a perfect example, as it serves the gaming community through its PlayStation brand and is invested in the chat platform.
Turning to Wall Street, the analysts’ consensus estimate for Sony is Moderate Buy based on two Buy ratings over the last three months. With that comes an average price target of $30.50, a high of $33, and a low of $28. This represents a potential 28.61% upside for SONY stock.
See more SONY stock analyst ratings
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