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Roblox stocks surged from an opening of $45 to a peak of $77.30 during its stock launch this Wednesday.
ROBLOX STOCKS LAUNCH THROUGH DIRECT LISTING
The Roblox Corporation (NYSE: RBLX) opened its shares to the public Wednesday, with a reference price of $45. Through direct listing, Roblox opened its stocks for purchase without any chance for investors to pre-purchase their stocks. This worked well for the company, whose $45 stock price rose to $64.50 as the stock market closed on Wednesday. The price today reached a peak of $77.30, currently hovering at around $73 as of press time.
Roblox co-founder David “Builderman” Baszucki says that they are far from being just a regular gaming corporation. They believe that Roblox is in a wholly new different category. The company earns money through its ecosystem of content creators. Over millions of different games are made on the platform each year. Through them, players buy and use in-game currency called Robux on content like clothing.
“It's a unique category because it allows people to come together,” says Baszucki in an interview with CNBC. “We sometimes call it the human co-experience category. Some people refer [to] this as the future meta-verse category.”
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REDDIT USERS BUY NYSE:RBLX AS NEW “MEME STOCKS”
Meanwhile, many people attribute the rise of Roblox's stocks to Redditors. In seemingly another orchestrated movement of the amateur investors, Roblox stocks have become the brand new “meme stock.” The flavor of the day, so to speak. The success they saw with GameStop (NYSE: GME), which recently saw another spike in price, they wish to replicate with Roblox.
Reuters reports that there have been dozens of posts in the platform that NYSE:RBLX “will draw a wave of buying from the army of small-time investors who have shocked institutional investors with their ability this year to move shares in companies including GameStop, AMC Inc and BlackBerry.”
A look at the past couple of weeks' posts on the r/wallstreetbets subreddit confirms this, showing that some of the same people who worked on GameStop's rise are seeing the same opportunity with Roblox.
