🤖 Roblox: If You Build it, They Will Come (Play)

Roblox opens for trading today. Stitch Fix breaks down.

Hey Global Investor, here’s what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Yesterday’s Close) 3,875.44 +54.09 (1.42%)

NASDAQ (Yesterday’s Close) 13,073.82 +464.66 (3.69%)

FTSE 100 (5 PM IST) 6,708.36 −21.97 (0.33%)

NIFTY 50 (Today’s Close) 15,174.80 +76.40 (0.51%)

USDINR (5 PM IST) 73.00 (1 Year -1.95%)

🔥 Top Movers

RIOT +33.81%
MARA +28.97%
GME +26.94%

ACAD -45.35%
SFIX -28.15%
SOXS -18.32%


🤖 Roblox: If You Build it, They Will Come (Play)

Online game platform Roblox (RBLX) will go public through direct listing today on the NYSE at an estimated valuation of $29.5 billion. (Tweet This)

Background: Gaming has long been an incredibly profitable industry. To understand just how profitable – consider movies – the most financially successful movie of all time – Avengers Endgame. It raked in $360 million on its opening weekend. In comparison, the recently launched video game Red Dead Redemption 2 (which is not the most successful video game of all time) did $725 million in sales in the same time.

As early as 2016, global gaming revenues were nearly double that of film and music – combined. It’s not surprising then that investors see the incredible upside of Roblox and its place in the gaming multiverse.

What Happened?:

As the 58-year-old CEO of Roblox, David Baszucki, takes it public, Roblox has an impressive 160 million monthly users. What makes Roblox unique, however, is that unlike its competitors EA or Epic, Roblox doesn’t make any games.

Instead, Roblox provides developers with a platform to build their own games for Roblox users. For this service, the company pays them 70% of all sales on their games, retaining the rest for itself.

For example, more than 1,250 developers made at least $10K last year by helping build games on the platform. These rewards incentivize developers to continue churning out high-quality games, further improving the user experience.

Roblox was a massive beneficiary of the COVID-19 induced lockdown. As people spent more time at home, Roblox allowed them to socialize with their friends virtually – by visiting theme parks, attending concerts, and of course, playing games. Roblox users spent a cumulative 30 billion hours on the platform last year.

These communities, of developers and users alike, helped the company to nearly $1 billion in annual sales in 2020, up 82% year-on-year.

Roblox (NYSE: RBLX) will list for public trading today and will be available on Winvesta to invest.

Newsworthy 📰

It’s Game Time: GameStop gains another 20%, extends five day rally (GME +26.94%)

Bounce: Tesla Stock Jumps As China Sales Show Changing Market Dynamics (TSLA +19.64%)

Torn: Stitch Fix shares plunge over 24 percent on surprise holiday loss (SFIX -28.15%)


Later Today 🕒

  • After Markets Close: Oracle Corp Earnings (ORCL)
  • After Markets Close: Cloudera Inc Earnings (CLDR)
  • After Markets Close: LendingClub Corp Earnings (LC)
  • 7:00 PM IST: Core CPI

Fun Fact of The Day 🌞

Ronald Wayne was a third co-founder of Apple, along with Steve Wozniak and Steve Jobs. In 1976, he sold his 10% share of the company for $800.

Disclaimer: The content of this article has been created and published by Winvesta India Technologies Pvt. Ltd., in order to ease the reader’s understanding of the subject matter. The information and/or content (collectively “Information”) provided herein is general information sourced through various news reports and does not constitute a research report or a research analysis. The Information is not intended to offer advice, target or solicit any particular customer or group of customers to buy or sell securities. 

Winvesta does not render any research or advisory services and provides a more detailed description of its services on its website and mobile application along with the terms and conditions published therein from time to time. While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by Winvesta as to its accuracy or completeness and Winvesta, its affiliates, subsidiaries and employees accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. Neither Winvesta nor any of its affiliates are acting as an investment adviser, research analyst or in any other fiduciary capacity. Accordingly, reader’s are expected to undertake their own due diligence in consultation with their own advisors and are advised not to solely rely on the Information. Any such reliance shall be at the reader’s own risk. 

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.

Start Building Your Global Portfolio Today

Download Winvesta App now to Get Started