Summary: Investing in Epic Games Stock
Learn how to invest in Epic Games Stock, the creator of Fortnite and Unreal Engine. Although an IPO is pending, gain exposure through Tencent or Sony. Explore other gaming stocks and stay prepared for future opportunities in this dynamic market.
Invest in Epic Games Stock
Epic Games, known for creating the globally popular video game Fortnite, has captivated millions of players. With over 350 million active accounts, Fortnite is one of the most-played games worldwide. However, Epic Games is more than just Fortnite. It also developed Unreal Engine, a powerful game development platform used in many top games. Unreal Engine’s technology extends across various industries, including film, television, architecture, automotive, manufacturing, and simulation. Additionally, it powers the Epic Games Store and Epic Online Services, offering a complete platform for developers to create, distribute, and operate games and digital content.
Epic Games generates substantial revenue, making it attractive to potential investors. If you’re one of the millions who have spent money on Epic Games’ platform, you might be curious about investing in Epic Games Stock and sharing in its financial success.
Is Epic Games Stock Publicly Traded?
As of late 2023, Epic Games has not completed an initial public offering (IPO), so its stock isn’t available on public stock exchanges. Therefore, investors cannot directly buy Epic Games stock through a brokerage account.
Who Owns Epic Games Stock?
Epic Games is privately held, with its stock owned by key stakeholders:
- Tim Sweeney: Founder and CEO Tim Sweeney owns more than half of Epic Games’ stock.
- Tencent (TCEHY): This Chinese tech and entertainment giant holds about 40% of Epic Games stock.
- Sony (SONY): The Japanese entertainment conglomerate owns around 4.9% of Epic Games stock.
- Kirkbi: The holding company behind The Lego Group has a 3% stake in Epic Games.
Will Epic Games Stock Become Publicly Available?
As of late 2023, no official announcement has been made regarding an IPO for Epic Games stock. Speculation has been growing since 2021 that the company might go public. Some suggest that 2024 could be the year Epic Games finally launches its IPO. However, the sluggish IPO market, affected by rising interest rates and economic challenges, might delay the process.
How to Gain Exposure to Epic Games Stock
Although you can’t directly invest in Epic Games stock until an IPO, you can gain indirect exposure by investing in publicly traded companies that own shares in Epic Games. The two main options are Tencent and Sony:
- Tencent: Tencent holds 40% of Epic Games, providing significant indirect exposure. However, this is just a small part of Tencent’s vast portfolio, which includes over 800 companies and popular platforms like WeChat.
- Sony: While Sony’s stake in Epic Games is smaller, it is a global leader in technology and entertainment. Sony owns the PlayStation brand, is a top video game publisher, and has significant influence in the music and film industries.
If you want to own a piece of Epic Games, investing in Tencent or Sony might be the best option until the company completes an IPO.
Alternatives to Investing in Epic Games Stock
If you’re interested in the gaming industry but want other investment options, consider these publicly traded video game companies:
- Take-Two Interactive (TTWO): Known for franchises like Grand Theft Auto, NBA 2K, and Red Dead Redemption.
- Electronic Arts (EA): The company behind popular sports franchises Madden and FIFA.
- Roblox (RBLX): An online platform that allows users to play games created by other users, offering a unique gaming experience.
Epic Games Stock Overview
| Aspect | Details |
|---|---|
| Company | Epic Games |
| Key Product | Fortnite |
| Unreal Engine | A powerful game development platform used across industries (gaming, film, architecture, automotive, etc.) |
| Epic Games Store | Platform for developers to create, distribute, and operate games and digital content |
| Is Epic Games Stock Public? | No, as of late 2023, Epic Games has not completed an IPO. Shares are not available on public stock exchanges. |
| Major Stakeholders |
|
| Potential IPO? | No IPO scheduled as of late 2023. Speculation exists that Epic Games might go public in 2024, depending on market conditions. |
| Indirect Investment Options |
|
| Revenue (2022) | $5.2 billion, including revenue from Fortnite and Unreal Engine. Epic Games Store saw $820 million in spending by PC players. |
| Profitability | Epic Games was not profitable from 2019 to 2021. The Epic Games Store was operating at a loss as of late 2023 due to growth investments. |
| Valuation (Early 2022) | $31.5 billion, following a $2 billion funding round with Sony and Kirkbi. |
| Comparable Valuations |
|
Should You Invest in Epic Games Stock?
Although you can’t invest in Epic Games stock directly, consider these factors before the company potentially goes public.
Is Epic Games Profitable?
As a private company, detailed financial information about Epic Games isn’t readily available. However, documents from a legal dispute with Apple revealed that Epic Games was not profitable between 2019 and 2021, losing between $100 million and $200 million annually. As of late 2023, the Epic Games Store was still operating at a loss as the company focused on growth and capturing market share from competitors like Apple and Alphabet.
It’s common for growing technology companies to operate at a loss while investing heavily in new products. For Epic Games, this includes expanding its Epic Games Store and developing new titles.
Epic Games’ Revenue
In 2022, Epic Games generated $5.2 billion in revenue, primarily from Fortnite and the Unreal Engine. In the same year, PC players spent $820 million on the Epic Games Store.
Compared to competitors, Roblox generated less than $3 billion in revenue in 2023. Take-Two Interactive expected to bring in between $5.5 billion and $5.6 billion for its 2024 fiscal year. Meanwhile, Electronic Arts (EA) had significantly higher sales, with $7.6 billion in total net revenue over the past year.
Epic Games’ Valuation
In early 2022, Epic Games raised $2 billion in funding, with Sony and Kirkbi each contributing $1 billion. This funding round valued the company at $31.5 billion. To put this in perspective, Electronic Arts had a market cap of over $37 billion in late 2023. Roblox was valued at around $28 billion, and Take-Two Interactive’s market cap was approaching $27 billion.
epic games inc. stock
Epic Games, the developer behind popular titles such as Fortnite and the Unreal Engine, remains a privately held company and has not gone public yet. As of late 2023, it has not completed an initial public offering (IPO), meaning its shares are not available for purchase on public stock exchanges like NASDAQ or NYSE.
Current Status and Valuation
Epic Games reached a valuation of approximately $31.5 billion after securing $2 billion in funding in April 2022, with significant investments from Sony and Kirkbi, the holding company behind LEGO. The company has seen substantial revenue growth, reportedly increasing from $5.7 billion in 2021 to $6.3 billion in 2022, although it has not yet turned a profit.
Ownership and Investment Opportunities
Tim Sweeney, the founder and CEO of Epic Games, primarily owns the company, holding more than half of the shares. Tencent holds about 40%, while Sony owns approximately 4.9%. While retail investors cannot buy shares directly, accredited investors may have opportunities to invest in Epic Games through secondary markets or by purchasing shares from existing shareholders before an IPO occurs.
Future IPO Prospects
There is speculation about when Epic Games might go public, but no official announcements have been made regarding an IPO date or plans. The company would need to meet specific criteria to initiate this process, including raising a minimum amount of capital through the sale of shares
| Company | 2023 Revenue | Market Cap | Ownership in Epic Games |
|---|---|---|---|
| Epic Games | $5.2 Billion | $31.5 Billion (Valuation) | N/A |
| Electronic Arts (EA) | $7.6 Billion | $37 Billion | N/A |
| Take-Two Interactive | $5.5 – $5.6 Billion (Forecast) | $27 Billion | N/A |
| Roblox | Less than $3 Billion | $28 Billion | N/A |
| Tencent | Varies (Large tech and content platform) | Varies | 40% of Epic Games Stock |
| Sony | Varies (Entertainment and electronics) | Varies | 4.9% of Epic Games Stock |
The Bottom Line on Investing in Epic Games Stock
While you can’t buy shares of Epic Games stock yet, investing in one of its major shareholders like Tencent or Sony can provide indirect exposure to the company’s success. Alternatively, you could explore other gaming stocks to benefit from the industry’s growth. These options allow you to participate in the gaming market until Epic Games potentially launches its much-anticipated IPO, which could be as epic as Fortnite itself.
Frequently Asked Questions about Investing in Epic Games Stock
How can I invest in Epic Stock?
Epic Games is currently a privately held company, so you can’t directly invest in its stock. However, you can gain exposure by investing in Tencent or Sony, both of which own significant shares in Epic Games.
Is Epic Games publicly traded?
No, Epic Games has not completed an initial public offering (IPO) as of late 2023, so it remains privately held.
Who owns Epic Games?
Key stakeholders own Epic Games, including founder and CEO Tim Sweeney, Tencent, Sony, and Kirkbi, the holding company behind The Lego Group.
Will Epic Games have an IPO?
There has been speculation that Epic Games might go public in the future, possibly in 2024. However, no official announcement has been made regarding an IPO.
What companies offer indirect exposure to Epic Games?
You can gain indirect exposure to Epic Games by investing in Tencent or Sony, both of which own shares in the company.
Are there alternatives to investing in Epic Games?
Yes, you can consider other gaming stocks like Take-Two Interactive, Electronic Arts, or Roblox as alternatives to investing in Epic Games.
Is Epic Games profitable?
As a private company, detailed financial information is limited. However, reports indicate that Epic Games was not profitable between 2019 and 2021, and its Epic Games Store was still operating at a loss as of late 2023.
What is Epic Games’ revenue?
In 2022, Epic Games generated $5.2 billion in revenue, with significant contributions from Fortnite and the Unreal Engine. PC players also spent $820 million on the Epic Games Store that year.
What is Epic Games’ valuation?
In early 2022, Epic Games raised $2 billion in funding, giving the company a valuation of $31.5 billion. This valuation is comparable to other major publicly traded gaming companies.
What are the best alternatives to buying Epic Stock?
If you’re looking for alternatives, consider investing in companies like Take-Two Interactive, Electronic Arts, or Roblox. These companies are major players in the gaming industry and offer attractive investment opportunities.
