How to buy Roblox (RBLX) shares
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This guide introduces you to Roblox and gives you all the information you need to know in order to invest in its shares. We explain how to invest in the stock market, a brief history of the company, and where to buy Roblox stock.
Where to buy Roblox stock
If you are looking for the best place to buy Roblox stock, check out the options below. Our team of financial experts have been through all the best brokers and compared them so that you can find the ideal one for you. If you’re not ready to invest yet, keep reading to learn more about one of the stock exchange’s newest listings.
How to buy Roblox stock, a step-by-step guide
Choose a broker and create an account
To get involved, you need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
Decide how much to invest
Setting a budget before you make any investments is key and you should never invest more than you can comfortably afford to lose. It’s recommended that you spread your money across a range of different assets so it’s not a good idea to put all of your funds into a single stock. RBLX is a new company so expect some ups and downs in its price.
Research Roblox and its potential
Before you buy any Roblox shares you’ll need to conduct balanced research into it. A lot of things will impact its price and future potential, so you’ll need to consider a range of factors. One way to analyse how well it is doing is by looking at its financial performance. You can head over to its investor relations website where you’ll find its latest reports.
Place an order for RBLX stock
Now navigate to the stocks section of your chosen broker. Here you’ll be able to search for Roblox’s ticker symbol (RBLX) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
Execute your order
Once you have placed your order, your broker will automatically execute it for you and your Roblox shares will be listed in your account. Congratulations, you’ve just bought shares in Roblox! You will be able to go to the open positions section in your account where you can monitor your open trade and make any changes.
Review your investment regularly
The stock market can move a lot and for newer companies like RBLX it is not uncommon to see big changes in price. It’s a good idea to check back regularly to see how Roblox is performing. For added peace of mind it’s helpful to use a stop loss order, which will automatically close your trade at a predetermined price level.
What is Roblox? And should I invest?
Roblox (NYSE: RBLX) is an online gaming platform aimed at under-18s. Formed in 2004, Roblox has exploded in popularity over the last decade and now has more than 50 million active users every day.
More like an immersive online meeting place than just a gaming platform, Roblox has lots of features that were ideal for a world forced to stay inside for a year. Its most defining feature, however, is the fact anyone can create their own game within it. Amateur developers have made more than $200m in 2020 alone as a result, and the platform gets a cut from every transaction.
Roblox announced plans for an initial public offering (IPO) in late 2020 before changing its mind and ultimately choosing to go with a direct listing in March 2021. Ever since Facebook changed its name to Meta at the end of 2021, companies operating in the metaverse gained traction and popularity. RBLX is known as a pioneer in the space and if the metaverse takes off, its shares could see substantial gains.
How has the company performed in recent years?
Roblox is a new listing, having only been made available to trade on the stock exchange in March 2021, so there isn’t much history to go on. Ahead of its listing, it was aiming for a share price of around $45, which valued the company at more than $28m.
As an indication of how well it did during the pandemic, $28m is a seven fold increase on its valuation a year before. In February 2020, as part of its preparation for going public, Roblox was valued at $4m. The number was raised to $8m in November 2020 but the target price still represents a significant jump in the space of a few months.
Some of that optimism is warranted by the numbers behind its gaming platform. A global pandemic forcing everyone to stay at home led to it growing its active user base from 17m in 2019 to 50m in 2022. Although it’s not been plain sailing and 2022 has seen its share price drop to its lowest point following poor earnings and a slower than expected user growth.
Is it a good time to buy Roblox shares now?
It depends on your attitude to risk. The early stages of a company’s listing can be volatile. This is especially the case with new listings in recent times that have seen the prices of companies like Airbnb and DoorDash swing wildly over the first few months of trading.
Roblox hasn’t been able to avoid that volatility and in its short trading history big price swings have been a concern for some investors. Late 2021 and early 2022 has seen a significant drop in its share price. However, it has a strong user base of millions of gamers and although growth hasn’t been as fast as expected by some analysts, RBLX has in fact managed to gain new users at a rapid pace in its short history.
It has its own metaverse and currency, something which many cryptocurrency projects and companies are trying to imitate. It has a platform that millions of teenagers around the world use daily and if it is able to re-establish the growth it saw in its early years, buying now could be a good option. If you’re still undecided, you can check out the latest news and analysis on the links below to help you make a decision
Ways to invest in RBLX
- Buy Roblox shares. The easiest and most common way to invest in Roblox is to buy shares in it. This means you will own a piece of the company and your investment will rise and fall inline with its performance.
- Invest in Roblox ETFs. Exchange traded funds offer a different approach to investing. Buying shares in an ETF that includes Roblox is an easy way to get exposure to a wider industry such as technology or gaming.
- Invest in Roblox funds or trusts. Funds are similar to ETFs, although they are managed by a professional fund manager who buys and sells assets according to their expertise. There are lots of funds that include Roblox, as well as other stocks.
- Trade Roblox. If you have a short term view of how it will perform, trading may be a better option. One way to trade Roblox is through CFDs. Using CFDs you can bet on if its price will go up or down in the near term.
- Spread betting. Spread betting is another way to bet on RBLXs short term share price. One of the main benefits of using this method is that any profits you make are tax free. When spread betting you won’t actually own any shares in the company.
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >