Roblox Takes Off Nicely After Its Listing Debut; Can It Soar Higher?
The gaming platform soared over 50% on its direct listing debut instead of the usual IPO and it looks like the future for Roblox ($NYSE:RBLX) is bright to say the least. Can this stock push its price to $100 soon?
Roblox co-founder David Baszucki said Wednesday in an interview with Bloomberg:
“We love the direct listing for Roblox, because we’re all going to come together and that first trade is going to be at the same price for everyone”
Baszucki is also envisioning Roblox to evolve into a social platform and not just a gaming platform. So are we going to see a potential Facebook competitor? It’s too soon to tell.
What Makes Roblox So Special?
Roblox lets developers create games for the platform and people of all ages can jump in the endless plethora of choices.
They also offer Premium memberships for a monthly fee which also grants members Robux allowances and exclusive items. Think of it like the Xbox Game Pass but filled with kid-friendly games.
One of its popular games that you can jump into is “Adopt Me” which is like a pet simulator where you raise and trade pets.
If you’re looking for a similar game clone of “The Sims”, then you might want to look at “Welcome to Bloxburg”.
Roblox also plans to introduce a “safe” voice chat option for players in the future since this platform is mostly dominated by kids.
The 2020 Pandemic Growth Story Looks Worth Investing Into
What fueled Roblox to go as high as $69 from its initial starting price of $45 is the fact that they raked in revenues last 2020 worth $924 million.
However, the company will expect lesser growth this year after expecting growth rates of more than 60% ending the quarter.
This is because most people would be outside since restrictions from other parts of the world are being lifted.
Where Can We See Roblox In The Next Couple Of Days?
If we’re going to use our line trading system, we’re interpreting this pattern from the 5-minute timeframe to be a good bounce point above 69 and it might do a short term rally from 75 to 80 as the profit taking targets.
If we’re going to consult the candlestick high and use 45 as the reference low since they started trading at this price, then it is possible that it can reach 100 in the medium to long term run.
Using our Trinity Philosophies we can execute any of these trade plans.
Roblox is also poised to be one of the outliers this year and it already shows from last year’s performance.
If the world gets treated to another set of lockdowns because of the virus (knock on wood), then their massive growth history might repeat itself.
Is Roblox signaling a nice bounce from 69? There are a few days left before the trading week ends and if it manages to hold above 70, then we might be in for a quick rally!