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%.
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