Does Roblox have the building blocks of a good stock?

2 Просмотры
Издатель
Gaming company Roblox made its public debut on the New York Stock Exchange Wednesday. Investors are excited about the company, leading to a pop in the stock's trading debut, but is Roblox worth it? CNBC's Jon Fortt breaks down both sides of the argument. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

Roblox, the kids gaming app that surged in popularity during the pandemic, soared in its market debut on the New York Stock Exchange on Wednesday. The company’s stock closed at $ apiece, giving the company a market cap of $ billion.

Roblox went public through a direct listing, following the lead of other tech companies including Spotify, Slack and Palantir. Instead of raising fresh capital in exchange for new shares, Roblox allowed existing shareholders to sell immediately, without being subject to a lockup period.

Shares began trading at $, which represented a 43% increase from a private financing round in January, when the company sold shares for $45. The NYSE set a reference price on Tuesday of $45, though no stock changed hands at those levels. The reference price tends to reflect private market trading and does not indicate where a stock will open.

Based on a fully diluted share count of 652 million, which includes restricted stock units that will convert to common stock, the company was worth $ billion, as of its closing price.

Roblox hits the market coming off an explosive year of growth, primarily from kids who were stuck at home because Covid-19 forced schools to close and sports leagues to shut down. Within Roblox, which is one of the top-grossing apps on Apple and Google devices, users create avatars that they can move between the millions of games on the service, navigating theme parks, adopting virtual pets and fighting enemies with their friends.

Revenue last year jumped 82% to $ million. Still, Roblox’s net loss widened to $ million from $71 million in 2019 as the company almost tripled the amount of money it paid to developers through its revenue sharing program. More than 1,250 developers made at least $10,000 last year through virtual sales in their Roblox games.

» Subscribe to CNBC TV:
» Subscribe to CNBC:
» Subscribe to CNBC Classic:

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30:

Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:



#CNBC
#CNBCTV
Категория
кс го ран
Комментариев нет.