Update March 12: Roblox shares continued to remain strong on Thursday as shares consolidated above $70 for the full session. RBLX shares have been one of the new favourites among retail investors, trending heavily on Reddit forums and other social media sites. Cathie Wood of ARK Invest had also boosted sentiment as her fund purchases half a million shares on Wednesday. Roblox shares are trading at $71.30 down 3% in Fridays pre-market trading.
Update March 10: Roblox is on a roll also on Thursday, with shares of the social video gaming company rising to $73.34 at the time of writing after hitting a new all-time high of $77.78. The company that only listed on Wednesday has been flirting with a valuation of $50 billion, placing it within the likes of medium-large companies. For those looking for quick gains, it means that additional fast swings may be limited at these valuations. However, the fundamental case for gaming remains robust.
Roblox Corp (NYSE: RBLX) has kicked off trading on Wall Street with a post-direct listing pop, hitting a high of $74.83, up some 14% and surpassing estimates of a $60-65 price range. Senior staff at the video game developer have dismissed concerns that it has become a "meme stock."
See Roblox (RBLX) Stock Price prediction: The new game in meme town is Roblox
The reference price set by NYSE on Tuesday was $45 – which already gave it a valuation of around $30 billion – so the leap to current highs only amplifies the rise.
Roblox has gained popularity during the pandemic as teenagers stuck at home found themselves spending time with its games, but the company has been in business since 2004. The San-Mateo-based company is gaining traction by offering social gaming via entertainment toys.
Wednesday's Reddit market action has been centered on GameStop – where trade was halted several times – while broader markets are relatively calm.
Previous updates:
Update: Shares in Roblox closed at $69.50 on Wednesday having an opening at $64.50, from a reference price for the launch of $45. Retail interest in Roblox stock was strong with Reddit and many other social media sites showing strong trends to RBLX stock price. As of early Thursday, Roblox shares are higher again trading at $85.94 in the pre-market for a gain of 23%.
The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Uptrend remains capped by 0.6650
AUD/USD could not sustain the multi-session march north and faltered once again ahead of the 0.6650 region on the back of the strong rebound in the Greenback and the prevailing risk-off mood.
EUR/USD meets a tough barrier around 1.0800
The resurgence of the bid bias in the Greenback weighed on the risk-linked assets and motivated EUR/USD to retreat to the 1.0750 region after another failed attempt to retest the 1.0800 zone.
Gold eases toward $2,310 amid a better market mood
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Bitcoin price coils up for 20% climb, Standard Chartered forecasts more gains for BTC
Bitcoin (BTC) price remains devoid of directional bias, trading sideways as part of a horizontal chop. However, this may be short-lived as BTC price action consolidates in a bullish reversal pattern on the one-day time frame.
What does stagflation mean for commodity prices?
What a difference a quarter makes. The Federal Reserve rang in 2024 with a bout of optimism that inflation was coming down to their 2% target. But that optimism has now evaporated as the reality of stickier-than-expected inflation becomes more evident.