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Discord IPO

How to trade Discord's IPO

San Francisco-based digital communications and software company Discord is planning to debut on the stock market later this year. Find out how to get notified for Discord’s IPO and how you can spread bet or trade CFDs on the company’s stock with us.

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Late 2021/Early 2022

Discord going public

$17bn

Discord’s potential valuation

$130m

Discord’s 2020 revenue

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What is the Discord app?

Discord runs an instant messaging platform and app where users can interact over voice, video and text. It also offers gaming, although the company reported in 2020 that 70% of its user base uses the platform for non-gaming purposes. Discord has an audience of over 150 million monthly active users and 19 million active servers per week.

The service is used by people across the globe, from local hiking clubs to art communities to study groups. It is compatible with platforms such as Windows, iOS, and Android, as well as other apps, where users can sync their data with the likes of YouTube, Spotify, and Twitch for screen sharing.

When is Discord’s IPO date?

An official IPO date for Discord hasn’t yet been announced but it’s expected late 2021 or early 2022. It could likely list on the New York Stock Exchange (NYSE) or Nasdaq exchange, the latter of which is particularly popular with digital technology companies, recently having listed GitLab, Duolingo and Coinbase.

Sign up below to receive email notifications of Discord’s listing and any other upcoming IPOs​ that may be of interest to you.

What will Discord’s share price be?

Discord hasn’t yet priced its shares; we can expect this information to be released as we get closer to the IPO date. Be sure to check back to this page for when we update the information.

What is Discord’s valuation?

According to Forbes, the company could be valued up to $17bn.

Discord has seen an active year in terms of fundraising. In December 2020, it raised $100m, giving it a valuation of almost $7bn. Then in September 2021, it raised an additional $600m, giving the company a steady cash flow and a $15bn valuation. It has been backed by reputable private equity and venture capital firms, including Fidelity, Benchmark, Greylock Partners, and Franklin Templeton.

How to trade on the upcoming Discord IPO

1. Register your interest

By entering your email into the sign-up box at the top of the page, we’ll notify you when Discord has listed on its chosen exchange.

2. Open an account

Spread bet or trade CFDs on Discord’s competitors while you wait for our derivative to become available.

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3. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Use risk-management controls

Choose between our range of execution and order types, such as traditional, trailing, and guaranteed stop-losses, and take-profit orders.

Our execution types

How are Discord’s financials?

Given that Discord is still a privately held company, there isn’t a wealth of financial information to report on. According to Forbes, Discord earned $130m in revenue in 2020, up from $45m in 2019, which is a threefold or 188% year-over-year increase. It operates a ‘freemium’ model, where users can build on its free product offering by purchasing in-app features, games, and merchandise.

The Covid-19 pandemic has proven to be very beneficial for the company. Discord released a statement on its blog to emphasise the many new ways in which customers have used the platform over the past year, whether it be for gaming, organising political movements, or hosting virtual wedding ceremonies.

Please remember that past performance is not a reliable indicator of future results.

Reasons why investors may be interested in a Discord IPO

Investor interest within the digital gaming industry is at an all-time high. Companies such as Roblox and Playtika had successful IPOs on the US stock market in 2021, and the global gaming industry is expected to grow at a compound annual growth rate (CAGR) of 12% between 2020-2025, according to Business Wire. This could value the industry at an impressive figure of $169.7bn.

Earlier in the year, Wall Street Journal reported that three companies were in talks to acquire Discord for an estimated valuation of $10bn, including tech giants Microsoft, Amazon, and Twitter. Although these plans were halted in favour of Discord staying independent, respect from such established companies may have helped to lift investor sentiment towards Discord.

Discord’s decision to reject a sale from another company helps to keep its product offering unique and possibly more attractive to investors and consumers alike, rather than merging its offering into an existing product of a tech conglomerate. It may also be a good idea given the new legislation in the US to limit merger deals within the tech industry.

What challenges is the company facing?

As Discord’s user base has increased rapidly to over 150 million, the company has noted an increase of online harassment and harmful links spreading on the platform. Therefore, it needs to take more action going forward to reduce this as much as possible. In 2021, it acquired AI-powered start-up Sentropy to help tackle these challenges.

Given the lack of reporting around Discord’s financials, there’s currently no evidence as to whether it’s a profitable company, or whether it will become profitable in the near future. Investors will need to monitor the company’s additional SEC filings closer to its IPO in order to make a more informed decision about whether the company will make a good investment or not.

Trade on Discord’s competitors

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93% of CMC client accounts with open positions on Microsoft expect the price to rise.

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Client sentiment is provided by CMC Markets for general information only, is historical in nature and is not intended to provide any form of trading or investment advice – it must not form the basis of your trading or investment decisions.

FAQ

How can I get notified about Discord’s IPO?

To receive email notifications for Discord’s listing and other upcoming IPOs, enter your email address into the sign-up box on this page. We will notify you when the stock has listed on its chosen platform and is available to spread bet or trade CFDs on via our trading platform.

What other digital companies are planning an IPO?

There are several digital technology companies that could potentially debut on the stock market late 2021 or early 2022. Read in detail about Stripe’s IPO, Databricks’ IPO, and Monzo’s IPO.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Download our app to trade on IPOs on-the-go

Download our mobile app for iOS or Android to get started. Once the shares are available on our platform, you will be able to spread bet or trade CFDs on our Discord share price.