How to buy shares in Roblox (RBLX) | Stake

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. We will soon find out whether the market agrees with such a price tag.

How to buy shares in Roblox (RBLX)?

During Wednesday’s session on 10 March, Roblox will complete a direct listing. At some point during the session, Roblox will become available to investors.

Here are a few things to keep in mind for those looking to invest.

  • 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.

  • Buying on Stake

Roblox will be listed on Stake by midday 10 March (AEST). Investors will only be able to submit an order for $RBLX once it is live on the exchange. This is often an unknown time after the market opens once the pre-listing auction is complete. While the stock page may be visible on the website and app, no orders can be placed until the stock is officially trading.