Roblox Climbs To AUD$50 Billion Market Cap
The popular kids gaming app, Roblox, has jumped to a market cap of USD$39 billion (AUD$50 billion).
After it’s New York Stock Exchange debut on Wednesday, the company’s stock closed at USD$69.50 (AUD$90) apiece.
Roblox’s stock market debut also had it valued higher than sports franchise EA Sports.
The online gaming platform opted for a direct listing, with no new shares in the company created and sold.
Rather, current investors sell already existing shares which are influenced by demand when trading opens.
They are the first direct listing of 2021, with Palantir Technologies and Asana notable direct listings last year.
Roblox is an online platform that enables users to create their own games, and play games created by other users.
After being founded in 2004, the game was initially released in 2006, and has grown in popularity since, particularly with the rise of e-sports.
Roblox founder, David Baszucki, said the platform has an exciting future.
“In 2004, we founded Roblox with the vision of connecting the world,” Baszucki said.
“Today, as we celebrate our direct listing on the New York Stock Exchange, we recognize the potential ahead of us: to build the platform where billions of people come together to learn, work, and play,” he said.
The company is predicting growth with 2021, estimating revenue to climb between 56% and 64%.
However, it only predicts daily active users to rise by 6% to 12%.
Roblox e-sports tournaments are being increasingly common, with their debut on the stock exchange having the potential to grow the exposure of these events.