On 10 March, Roblox went public via a direct listing on the NYSE. Here are a few things to keep in mind for those looking to invest in the California-based video game developer of the globally popular Roblox.
On March 10 2021 Roblox (RBLX) successfully launched into the U.S. stock market, with an evaluation of $41 billion.
How to buy Roblox (RBLX) shares
Want to start buying RBLX shares but not sure how? Learn how to buy Roblox stock on the Stake stock trading platform below.
1. Find a stock investing platform
To buy shares listed on the U.S. stock market, you'll need to sign up to an investing platform with access to Wall St. There are a number of share trading platforms in Australia, of which Stake is one.
2. Fund your account
Complete an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google pay.
3. Search for Polestar Automotive
Find the share by name or ticker symbol: RBLX. Do your own research to ensure it is the right investment product for your own circumstances.
4. Choose an order type and buy RBLX stock
Buy on any trading day with a market order or use a limit order to delay your purchase of RBLX shares until it reaches your desired stock price. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.
5. Monitor your investment
Optimise your portfolio by tracking how your stock and the business perform with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your stock.
What is Roblox?
Roblox may be the single pop-cultural phenomenon that supposedly trendy Gen Zs and millennials are oblivious to. To tween children and their middle-aged parents, it’s the hottest game in the world.
Roblox is an online video game that allows users to both play and build games on the platform.
With 150 million monthly active users, 35 million of whom play daily, Roblox is now more popular than games like Call of Duty, FIFA, and Minecraft.
The figure that most stands out is its popularity amongst the youth. 67% of Roblox’s users are under the age of 16. Digging deeper, 50% of all tweens (9-12yo) in America played the game weekly. Such a large user base generated US$923m in revenue for the company in 2020.
In February last year, the company raised US$520m to take its valuation to US$30b just 15 years into operation.
Direct Listings
The stock price and value of a company are entirely determined by market supply and demand. Existing shareholders can sell their shares at a price they calculate as fair while traders and investors determine their bid price. The stock initially trades where the bid and the ask meet.
During a traditional IPO, a bank will predetermine the value of a company during the underwriting process. Given direct listings do not feature an underlying predetermined valuation, they can be subject to increased volatility.
Roblox will become only the 5th direct listing in NYSE history.
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