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RBLX IPO

1,916 Views | 5 Replies | Last: 2 yr ago by Ghost of Bisbee
Ghost of Bisbee
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AG
Hi all, first time poster here and honestly not a longtime lurker, so apologies if I'm breaking an unwritten rule on this forum.

Roblox has announced its upcoming IPO, and I'm curious what the board's opinion on this one is. Hadn't seen discussion on this one so figured I'd start.

Roblox is a video game platform and creation suite that is incredibly popular among teens and children. It's a free to play model with micro transactions and subscription revenue, and the engagement statistics are staggering, no doubt also helped by COVID. Has been around since 2006 and I have no doubts they will be able to expand their user base going forward.

I'm planning to go heavy on this IPO buy when this happens.

https://www.google.com/amp/s/www.fool.com/amp/investing/2020/11/21/4-things-to-know-from-robloxs-ipo-filing/
cisgenderedAggie
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All I know is I freaking hate roblox. Won't let my children spend money on it and I actively seek to discourage and minimize its use.
Bird Poo
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AG
Did Minecraft go public? To me they are very similar.

My kids were into it for a. While and then switched back to Minecraft.
Hanrahan
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AG
Certainly will be interesting to watch given this has to be the first company ever to IPO saying "we know our current growth and engagement numbers will crater and reverse shortly after we IPO."

My kid plays that crap. I prohibit spending on it but he has still managed to spend a little money on it from gift cards from family. He has built some pretty impressive structures and landscapes in it that while not better than any time outside is at least engaging from a concentration and determination brain building exercise, so I tolerate, but do not in any way actively encourage it.
Ghost of Bisbee
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AG
PearlJammin said:

Did Minecraft go public? To me they are very similar.

My kids were into it for a. While and then switched back to Minecraft.


Microsoft acquired Minecraft for around $2.5B in 2014 and they have made that acquisition a core part of their gaming strategy with a large team working that brand across many channels. All that to say everything points to Minecraft performing very well for them.

While I don't know a lot about Roblox, it's creative platform for developers is the main differentiator vs. Minecraft. Developers can profit off their creations in Roblox I believe. It's a true platform, which gives it more staying power than something like Fortnite imo.

The claims by Roblox that performance is sure to slow once COVID passes should only help temper the price in the short term. Even when the game inevitably starts to generate less revenue from the COVID spike, the audience isn't going to go away in droves. This is a machine that will continue growing its user base.

It's been around for 14 years, I keep looking for a reason not to buy heavy if it truly does come in at $1-$3/share, but I can't find a reason not to.
Chamonix
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OP: Careful with IPO's. Set what the you think the company is worth and don't overpay. Ideally, an IPO is the lowest you will purchase a company for but the current market is less than ideal. The market was deprived of IPOs through COVID which has built up a lot of demand inflating IPO prices.

Additionally, highly anticipated IPOs can drive up stock valuation just through publicity. RBLX will be one of those. I think it's rated as one of the highest anticipate IPOs of the year. When you see the street with headlines like: "Roblox is guaranteed to be blockbuster IPO"

SNOW, UNITY, and GDRX, etc were some of the others. All saw big jumps at the opening and only one of the three is now above its opening price. SNOW, which was the most hyped of the group is still $40 a share less than its high.

One other strategy to take with RBLX is to pick up ETFs that you know will hold RBLX before the IPO. HERO and ESPO are gaming ETFs that look to make gains after the IPO.
Ghost of Bisbee
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AG
Bump. Bought in at $73. Pleasantly surprised with how it's doing.
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