By: NIKOLAI PASHCOV
Recently the very popular video game Roblox has released its stocks. Initially, Roblox was estimated at 29.5 billion but with this recent stock market debut, it says the company market can be up to 38.26 billion. With these huge numbers, the stock will open at around $70 a share but since then the New York stock exchange has valued the stock to now be around $45 dollars a share with 652 million shares outstanding. With the Roblox shares being so big it has more than doubled its main competitor Epic Games. Along with Epic games and Roblox, there have been many other game brands like Activation, Microsoft, Blizzard, and Zynga that have branched out into stocks. Because of Covid a lot more people are staying indoors and because of this many games are starting to receive an influx of people playing. Because of this companies are able to take this opportunity to be able to open up their stocks and earn money from the trends.
Although I am not a master at stocks, many people advise to stay weary with game company’s stocks because of the fact that they are purely trends. Especially when you look at games like Fortnite.
You can see this above. In August 2018 there were a total of 78.3 million monthly players and now there can be as low as 50 million players. One of the more drastic changes in the fall is the plunge in player count from 172,000 thousand players a month to 11 thousand players the last 30 days.
In conclusion, I think that it is a cool thing that video game companies are starting to get into stocks recently but if you do want to buy some stocks just remember to make sure it’s the right decision!