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Roblox, the most anticipated stock offering of the week, started Wednesday with stock jumping 54%

Roblox shares (ticker: RBLX) opened at $ 6475, up nearly 44% from the $ 45 reference price, and closed at $ 6950

Existing shareholders have registered around 199 million shares for sale, but 388Possibly 2 million shares could be sold Unlike a traditional IPO, the company does not raise new capital.Instead, holders sell shares they already own

With roughly 652 million shares outstanding, Roblox has a market capitalization of $ 453 billion based on the closing price of $ 6950, which is 53% more than the last round of funding.The $ 45 reference price released by the NYSE late Tuesday was intended as a guide , which informs the public of the latest private trading activity

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Founded in 2004, Roblox hosts kid-friendly games that focus on digital characters that resemble Lego blocks. On average, 1 million people come to Roblox every day to play games

Pedro Palandrani, research analyst at Global X, said the video game industry presents a tremendous opportunity The gaming sector is projected to grow from $ 175 billion in total revenue in 2020 to $ 300 billion in revenue by 2025, he said, “That is bigger than the Hollywood movie and film industry, “said Palandrani

Roblox competes against traditional video game companies like Electronic Arts (Ticker: EA) and


but is also a challenge for other entertainment options such as


(NFLX) and YouTube

Roblox is no longer a pure video game company, said Palandrani Roblox’s community of 8 million active developers has created games that allow children to play, communicate, learn, explore and expand their friendships.Children can survive natural disasters, go scuba diving, or even immerse themselves Adopting Pet Roblox combines “elements from video games, entertainment, social media, and even toys,” said Palandrani

Roblox also offers experiences where children can learn about history, including ancient Egypt, Greece and Rome, according to its website, more than 25 Roblox experiences have exceeded one billion visits, and every second child by the age of 16 has exceeded 1 billion uses Roblox, said Palandrani

More importantly, two billion chat messages are exchanged on the platform every day, he said. “Video games are becoming the new social media outlet in our world,” Palandrani told Barron

However, Roblox is not profitable Losses rose to $ 253 million for 2020 compared to $ 71 million in 2019 Revenue rose nearly 82% to $ 923 million

The company has raised $ 855, according to Crunchbase, funding $ 7 million, which includes a $ 520 million round in January led by Altimeter Capital and Dragoneer Investment Group, which valued Roblox at $ 29.5 billion / p>

David Baszucki,
Roblox ‘co-founder, president and CEO is 70 years old and has 1% of the total voting rights according to the prospectus for the deal190973 Class A shares registered, meaning that portion of the stock is up for sale. At $ 45, the CEO could get up to $ 594 million Harvest USD when these stocks are sold Gregory Baszucki, David’s brother and Roblox director, also has $ 15612556 shares are offered and could make $ 702 million if the stock is sold

Roblox, the most anticipated stock offering of the week, started Wednesday with stock jumping 54%

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Roblox Stock

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