What Caught Our Attention in the Investment World? – Week of March 8-12, 2021

By Kuldip K. Ambastha

Roblox Corporation (RBLX) went public in this past trading week through a direct listing on the New York Stock Exchange (NYSE). Roblox is an online gaming and entertainment platform which brings people together over shared interests. The stock’s reference price for the direct listing was $45.00. On Wednesday, March 10, 2021, the stock closed at $69.50, making for a +54.4% daily gain on the first trading day when contrasting the day’s adjusted closing price with the reference price. During the coronavirus (COVID-19) pandemic (which has resulted in people spending most of their time at home), more and more new users have flocked to the Roblox platform over time.

It remains to be seen if this trend will continue for Roblox once coronavirus (COVID-19) vaccinations have changed public health conditions on a more permanent basis around the world. Roblox allows users to create and monetize their own online games through Roblox Studio, and as of September 2020 had 31.1 million daily active users (DAUs). Of this number, 7.0 million users had created online games. If Roblox can keep the current DAUs and creators and also gain new DAUs and creators, then further daily stock price gains will be seen in the future.

Keywords – Roblox Corporation, Roblox Corp., Roblox, Roblox Studio, direct listing, New York Stock Exchange, NYSE, online, Internet, Web, gaming, entertainment, platform, users, daily active users, DAUs, creators, coronavirus, COVID-19, pandemic, vaccinations, public health.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in RBLX.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.

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