Roblox shares surge another 12% a day after the online-gaming company’s market debut

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Shares in online gaming platform Roblox surged as much as 12% in regular trading Thursday, its second day of public trading.

Roblox’s direct listing on Wednesday saw its shares pop 54%, giving the company that owns just one game a $45 billion valuation. For comparison, rival video-game company Electronic Arts is valued at $37 billion. Microsoft’s priciest acquisition of a video-game company was its $7.5 billion purchase of ZeniMax Media, the video-game publisher behind blockbuster games like “Doom” and “Fallout.”

Roblox’ co-founder David Baszucki has so far gained the most from the company’s direct listing. His stake in the company is now worth about $4.6 billion, according to Bloomberg, after the stock’s first day of listing.

“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 told Bloomberg in an interview on Wednesday.

The company’s stock rose to $77.27 per share in the pre-market after closing the previous day’s session at $69.50 per share.

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Roblox spikes 16% in public trading debut after $44 billion direct listing

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The popular Roblox game, “Jailbreak.”

Shares of Roblox spiked as much as 16% on Wednesday in the online gaming company’s first day of public trading. Shares began trading at $64.50, hitting an intraday high of $74.83.

The opening trades give the San Mateo, California-based firm a valuation of $44 billion.

Roblox was valued at just $4 billion back in February 2020 when the venture capital firm Andreessen Horowitz led a $150 million funding round for the company. Then, in January, Roblox raised around $520 million in a Series H private fundraising round that valued the fully diluted business at $29.5 billion.

Roblox has seen an increased interest in its online gaming creation platform due to the pandemic which made 2020 a banner year for the firm.

According to the Roblox’s S1 Prospectus, the company boasts 32.6 million active users and earned $923.9 million in revenue during 2020.

Roblox did incur a $253 million net loss on the year, but the company continues to produce significant cash flows, posting $411 million of free cash flow in 2020.

Roblox also continues to focus on paying its developers. In 2020, $328.7 million went to Roblox developers via the platforms digital currency, Robux, which can be converted to cash.

Over 1,250 developers earned at least $10,000 in the digital currency Robux from the platform and over 300 earned $100,000 or more.

David Baszucki, Roblox’s founder and CEO, spoke with CNBC on Tuesday about the company’s public debut.

The CEO said he believes the growth at his company “will continue even after COVID” because of the community of gamers and developers that they’ve been able to create.

When asked what investors should be looking for as a “fair comp” for Roblox, Baszucki said he believes Roblox is “forging of a new category” and said it could be called something like a “future metaverse category.”

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