Stocks in Roblox, the virtual game world that has proven to be a lockdown winner with hundreds of millions of mostly young players, have surged by 60 percent, valuing it at $47 billion after an investor frenzy on its first day of trading on the New York Stock Exchange.
Roblox Stock the Biggest Player in the NYSE
According to ScreenRant, Roblox hit the market with its stock initially listed at an estimated $45, but it jumped to $65 within seconds of going public. At its peak, the company's stock hit an impressive $74.55, but it soon dialed down to $69.50 as its closing price. However, that is still a 54 percent gain!
The Roblox stock also had other competition from the NYSE, with GameStop's incredible chaotic stock battle continuing. The company almost hit $350, but got struck down to a $180 price point. However, GameStop's stock came up again to a $265 price on the closing phase. The company's stock closed above its previous close of $246.90, but it's not better than the performance of the Roblox stockl.
In the after-hours of the NYSE, notable investors such as Cathie Wood bought in that raised the price to $70.30. It remains to be seen if the Roblox stock will continue to icnrease or see a decline after such a huge opening day.
What Is Roblox?
According to BBC, Roblox is now the world's largest user-generated game site, with players worldwide using core building components to create and share online worlds that anyone can explore, and it is free to play. In the open-world game, players rely on purchasing in-game currency known as Robux.
Game-makers can earn Robux, then it can be converted back into cash. More than 1,250 developers earned at least $10,000 in Robux in 2020, while more than 300 earned $100,000 or more.
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A Senior Game Analyst at Ampere Research, Louise Shorthouse, stated that Roblox's versatility to create games is a huge part of its success. Shorthouse added that it is not just a game for kids, but also a platform for creative minds to make a world of their own liking.
Shorthouse continued that Roblox is a marketplace where players can pick and choose to play an adventure game, a shooter, or a puzzle game that is good for the children. The open-world game is also available on numerous devices, from PCs, Xbox and mobile smartphones, allowing players to access the game world whatever device they are using.
Roblox Booming Amid COVID-19 Lockdown
A year ago, when parents found themselves stuck at home and meeting on Zoom, the lockdown had a big influence on people turning to adventure games to experience a wide world where players can roam around and create something for themselves. Roblox saw usage surge by 40 percent in a matter of weeks.
Over the last year, daily Roblox users have increased by 85 percent while monthly usage is up to 75 percent, and the number of hours spent playing the game has more than doubled to more than 30 billion, as The Guardian reported.
Co-founder and Chief Executive, David Baszucki, rang the New York Stock Exchange opening on Wednesday. The company started its first-day trading with a valuation of $29.5 billion. The 58-year old, better known to Roblox users as the Builder, saw his net worth hit $2.8 billion after its last funding round in January.
In 2004, we founded @Roblox with the vision of connecting the world. Today, as we celebrate our direct listing on the @NYSE, we recognize the potential ahead of us: to build the platform where billions of people come together to learn, work, and play. #RobloxIPO
— David Baszucki (@DavidBaszucki) March 10, 2021
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