Everything About Roblox IPO & Stock Listing
Popular online gaming platform Roblox aims to go for public listing. Here what you must know about Roblox Stocks.
Roblox is a free online game platform and a game creation system. On Roblox players can create their own custom games and play with other users. With over 164 Million monthly active users Roblox holds a $29.5 billion valuation. Due to its large player base among which half of them are children below 16, Roblox today holds a decent amount of valuation as a gaming company.
First released in 2006, it allows players to host user-created games of different genre’s. Games like Adopt Me, Shinobi Life 2, Tower Hell, Bloxburg are among the most popular Roblox game. It has been quite a long time since Roblox developers never thought of going public stock listing. The news is true and here in this article, we will discuss everything. Like when can you see Roblox Direct Listing, what is Roblox Stock Symbol, what is Roblox Stock Price, what is Roblox IPO Date, and what is Roblox Stock Price today.
Roblox IPO or Direct Listing?
Roblox had plans to go public in December 2020. The gaming company had stated earlier it raised $520 million in private capital. Roblox planned to go through direct listing instead of an IPO. Before the company planned to go via IPO listing was delayed due to a rise in DoorDash and Airbnb shares.
The company follows a revenue-sharing model with over 2 million developers who are producing games on the platform. To expands its area of services Roblox aims to create a platform for virtual birthday parties and concerts as reported by Bloomberg.
Roblox Stock Symbol and Roblox Stock Price
Roblox will trade on NYSE under the symbol “RBLX”. At the latest funding round, Roblox’s share was priced at $45 on the $29.5 billion valuation. The share will not be sold at the said price under the direct listing at NYSE. The stock exchange will set the reference price of the stock night before the shares go live. Read more about the Roblox Stock Opening Price on CNBC.com.
Should you buy Roblox Share?
Roblox was released in 2006 and after quite a long time it is hitting the market. The platform holds lots of kids population who are the most active players. One of the primary reasons behind the increasing kids player is the pandemic lockdown that forced them to stay indoors.
Roblox daily active users have doubled since September 2020 and the hours of engagement has also increased at the same rate. The game allows players to create an avatar that can play various other games on the platform. Players can use a virtual currency Robux to buy in-game items. They can buy cosmetics and other advanced features to develop their character.
Roblox is a video game platform where anyone can build games using the Roblox system. Players on this platform using one single avatar can walk through different games. Fees to access the game or upgrades are paid via Robux, the default game currency. The company makes revenue by selling Robux to users. On the contrary, the company does not consider Robux sales as a source of income until the player spends it or converts the same into cash.
How Roblox makes money?
Roblox calculates the revenue on the basis of average sales based on the lifetime of paid users. Based on different reports and news sources Roblox collects $5989 million in the first 9 months of 2020. The same has increased over 68% from the previous year. The company shows good growth in terms of revenue however it all relies on how well the players can respond in the coming future.
Roblox shows a massive rise in user engagement, this gives a positive sign about the companies profit. But as gaming is unpredictable Roblox may require to share a more concrete model of making money to the market on a long-term basis. Micro-transactions, loot boxes, in-game buying are traditional ways of making money in gaming.