Large video game companies and entertainment holdings have always been known to perform very well, especially if they own big-name franchises like E-sports titles and beloved games such as Grand Theft Auto and Apex Legends, to name a few. And as more and more people start looking towards gaming as their go-to source of entertainment, these behemoths are only bound to grow year after year.
Furthermore, this pandemic has amplified the number of daily active users on games across different platforms, causing unprecedented growth for famous titles. One such title that has seen its numbers spike is Roblox, and just last Saturday, it was confirmed that it now plans to go public.
On that note, today’s topic will revolve around Roblox’s success and its initial public offering. We’ll take a look at how this simple blocky game paradise plans to break into the stock market, and if you should consider investing.
What is Roblox?
In its most basic form, Roblox is a sandbox game that operates on a global platform. It allows its users to do whatever they want and gives them the freedom to build, create, and immerse themselves in their worlds. One of the most significant selling points of the game is the sheer limitless capabilities available to the users. The players themselves handcraft nearly all games on the platform, and they get to enjoy it with different people from PC, mobile, Xbox One, and even select VR headsets.
Furthermore, Roblox is an excellent source of education, and many of the tools available for game creation rely on the principles of game design and coding. It means that users gradually pick up very technical skills and get the opportunity to manifest their passion for game creation. Roblox also offers studio webinars and resources to cultivate and encourage the community to make it a learning experience.
How Did It Become So Popular?
Admittedly, even before the pandemic, Roblox was already a very famous game, with its demographic mainly consisting of players under the age of 16. And just as Capsher software solutions elevate the experience, players kept coming back to Roblox as nothing can offer the same player experience and level of multiplayer. Sure, it might not rival the same spike as Fortnite’s jump into stardom, but it has been steadily increasing and doesn’t show signs of stopping.
Couple it with the fact that most kids and teens are stuck at home with nothing better to do, this has only helped Roblox gain more and more traction and attract many more users into its player base. And with cabin fever and boredom becoming the new norm of problems, Roblox will only continue to grow and expand its reach.
Roblox Valuation
Roblox is currently valued at a staggering $4 billion, and they plan to further capitalize on this sudden boom brought about by the pandemic to double their valuation to $8 billion. As of writing, all we know is that Roblox is working closely with banks to prepare for the initial public offering. However, some sources say that Roblox is also entertaining the idea of a direct listing, depending on the market conditions.
And since we can only confirm the bare minimum, all we can do is wait for further information to go public before making any concrete conclusions on the future of Roblox.
What Are The Chances?
None of us can say for sure where Roblox is headed, but if it keeps up a steady growth and continues to cultivate its community, we expect only upside from here on out. Of course, we can’t forget that Roblox is still a video game, and while it did see increased success due to the pandemic, we need to be cautious if this growth is nothing more than hype.
Undoubtedly, if Roblox follows through with an initial public offering, investors are sure to flood in and help the videogame company reach its target. The concern is what path or direction Roblox decides to take for the future of the game. And if it builds upon more platforms, accessibility, and features, it might just do it, but it is too early to make any assumptions with no reliable information to work on.
A Gaming Company To Watch Out For
In conclusion, we firmly believe that Roblox is a gaming company that you need to put on your radar because if it does become an immense success, you don’t want to lose out on the opportunity to ride its initial wave. Our key takeaway is to stay vigilant and see what announcements or information come to the public because all we know is that their calendars are marked for early next year.