Roblox Makes Stock Market Debut at $38 Billion Market Cap

The popular children’s gaming app Roblox had a strong debut on the New York Stock Exchange yesterday, with its stock price closing at $69.50 a share, causing Roblox to reach a market cap of $38.26 billion, according to CNBC.

Roblox went public with a direct listing, which is a method used by other tech giants, such as Slack, Spotify, and Palantir. Direct listing means they allow current shareholders to sell right away without having to raise new money in order to get shares.

Roblox initially planned to go public last year through a traditional initial public offering, but delayed after watching DoorDash and Airbnb’s debuts where both companies undervalued their shares, leading to new investors getting big markdowns.

Roblox has gained momentum, thanks to the pandemic. On the gaming platform, players can look for and find many different user-created games to play. Each player initially creates an avatar, which they use to participate in all of the games, according to USA Today. The game is free on desktops and mobile devices.

“Roblox is an amazing community where people are creating together,” Roblox CEO and co-founder David Baszucki said, according to CNN.

Roblox reportedly has received around 20 billion site visits over the past four years since it first launched. It has 32.6 million daily active users with around 56 percent of them being under 13.

It is one of the top-grossing apps on Google and Apple devices. The company’s revenue rose 82 percent last year to $923.9 million.