A factor that both enhances the user experience, as well as provides the company with another revenue stream. But, there’s a unique element to this one. What do I mean when I refer to Roblox’s platform as “cutting edge?” There are scores of free-to-play gaming apps out there.

At a more optimal entry point, this could be a great long-term opportunity. Yet, richly-priced out of the gate, it may be best to take a “wait and see” approach with this recent initial public offering (IPO).Įventually, as enthusiasm for the stock fades, shares could pull back from their recent sky-high prices. Sure, with its high levels of growth, this is a stock deserving a premium valuation. The underlying business itself looks promising. Plus, with its app benefiting from the Covid-19 lockdowns, 2020 was a banner year in terms of growth. There’s no denying that Roblox has a cutting-edge platform in its hands. Since then, the stock has trended higher, and now trades for around $74 per share.

But, that initial pop was only the start.

Roblox ipo meaning