Roblox: Day Trading RBLX IPO! I Sold My Roblox Stock Today! Investing For Beginners: Trading Stocks!

Roblox (RBLX) had it's big day today as it went public through a direct listing. There was a lot of hype around RBLX stock and by all appearances, investors were expecting a massive rally. Unfortunately, even though the media may try to make it seem like the stock had a great first day of public trading in the stock market, I'm afraid that's not completely accurate.

Is RBLX stock one of the best stocks to buy right now after it's direct listing or would you have been better off investing your money in other stocks? In my opinion, IPOs are best for day trading.

Investors and traders are always looking for the next, best stocks to buy. I'm not so sure that RBLX stock is the best stock to buy at today's share price though. If you are new to investing in stocks, rest assured that this video considers aspects of investing in stocks for beginners. I explain things that you need to know about the stock market in a way that even an inexperienced investor or trader can understand.

Roblox was supposed to go public in 2020. Then the explosive trading debuts of Airbnb and Doordash forced it to rethink those plans.

If Roblox had proceeded with its original IPO plan, it could have left serious money on the table, just like Airbnb and Doordash did. And since the main point of an IPO is to raise capital -- not help institutional investors make a quick buck -- there might be a better way to do it.
And there is.

Going public via a direct listing

After postponing the IPO, Roblox raised $520 million from investors in a private funding round. The deal gave Roblox a $29.5 billion valuation -- up sevenfold from a year ago.

Next, Roblox announced its plan to go public via a direct listing. This route could further save Roblox money on underwriters' fees while still taking the company public.

Roblox will finally make its market debut on March 10, trading under the ticker RBLX. But before rushing in to buy the stock, here are two things you should know.

Roblox's money-making machine

CEO David Baszucki and Erik Cassel founded Roblox in 2004 with a vision of connecting people through immersive virtual worlds. On Roblox, users create games and play games created by other users. Initially, Roblox had a user base of several hundred people. Today, more than 36 million users play and interact on Roblox on a daily basis.

There are two crucial parts to Roblox's business model. The first part is the gaming platform on which users (developers and gamers) build and play games. Here, 7 million developers are building what Roblox calls "experiences" -- games, virtual items, and worlds. Thanks to Roblox's tools, it is easy for even children to create exciting games using Lego-like blocks instead of code. 

With 18 million experiences available to choose from, Roblox can easily attract new users and retain old ones. And as more users join Roblox's platform (and spend money on those games), developers are incentivized to create more engaging content -- drawing in even more gamers.

But that's just half the story.
When users enter Roblox, they usually invite their friends to join them. Then those friends invite their friends, and so on. With endless experiences to choose from, this virtuous cycle sustains Roblox's network effect. Sound familiar? That's how Facebook grew into what it is today. 

And because these games are not "just" games -- they are Minecraft-style worlds with plenty to discover -- Roblox's users spend lots of time on the platform. Even users who aren't gamers stick around just to hang out with each other. Like Facebook, Roblox is a social network.

Backed by the sheer size of its community, Roblox has managed to carve out an ecosystem with its own rules, economy, and currency. Users don't have to pay to play most games on Roblox. But they can buy and spend Robux -- Roblox's in-game currency -- to upgrade their avatars with accessories, clothing, or special powers.

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Видео Roblox: Day Trading RBLX IPO! I Sold My Roblox Stock Today! Investing For Beginners: Trading Stocks! канала Top Ticker Trades