After being enlisted on the New York Stock Exchange recently, Roblox game world has taken the US markets by storm after gaining immense popularity amongst children all around the world.  

Wall Street, which represents the company with the abbreviation ‘RBLX’, witnessed a significant upward rise in the gaming company’s share prices which ended at a surge of 54%, valued at $69.50.

With one of the most significant debuts on Wall Street, the company stood at a market valuation of about $40 billion. 

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“We are deeply humbled by the overwhelming support for @Roblox and our public offering today,”  chief executive and co-founder David Baszucki said in a tweet.

“We recognize the potential ahead of us: to build the platform where billions of people come together to learn, work, and play.”

With its Lego-like avatars and easy-to-learn coding for young programmers, the gaming application has become a famous clubhouse for budding gamers, most of them no older than 16.

By late last year, more than 31 million users daily were diving into Roblox on mobile, desktop, or console devices and cumulatively spending billions of hours there, according to the Silicon Valley based company.

On a daily basis, the company recorded over 31 million active users, who logged in through various devices, spending billions of hours logged into the app in total. 

In a blog post Baszucki said, “In an incredibly challenging year, Roblox became a crucial place for people to come together.”

Events that moved to Roblox virtual environs included birthday parties, get-togethers, graduation ceremonies, and company meetings.

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Kids log on to the mobile app after school to guide their avatars through obstacle courses full of pitfalls, escape from jail, dive into a treasure hunt or even to build their own adventure park

Big name brands and musicians have also taken to Roblox and its vision of a “metaverse” online world where people can freely express themselves.

Warner Brothers and DC created a Wonder Woman game on Roblox to promote a new film with that super hero.

US Rapper Lil Nas X, staged a concert experience there, Baszucki noted.

“And we’re just scratching the surface,” Baszucki said.

“We see a future where tens of thousands of people can gather in a single instance to join a virtual business conference, attend a movie premiere, or watch their favorite artists perform live.”

By opting to go public as a direct listing, like companies such as Slack, Spotify and Palantir have done, Roblox did not issue new shares on the exchange and therefore did not raise capital.

Instead existing shareholders — such as founders, employees and initial investors — will be able to sell their portions on the market.

The platform allows users to create their own video games and gives them a share of related revenue.

It counted close to 33 million daily players in 2020, and revenue soared 82% to $924 million.

Since its establishment in 2004, the company has still not announced a profit due to expenses on production, data protection and maintaining technological infrastructure. 

Roblox said it hired nearly 400 new employees in 2020, growing to 979 people, and that it bought an artificial intelligence startup with technology that can help it make avatars and scenes more realistic looking.

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“Our vision has always been to simulate the physical world, both visually as well as physically,” Baszucki said.

The user-favourite app caters to a mass audience while being available in almost a dozen languages and spreading its presence in over 180 countries. 

Combining social networking and fresh supplies of new games has proven an addictive formula for children, but it will likely be years before Roblox turns profitable, according to analyst Boris Schlossberg, who works at 60SecondInvestor.com.

“With COVID risk now starting to recede and the world returning to more physical activities can Roblox hold on to its base of users and expand into new markets beyond gaming?” Schlossberg asked in a rhetorical manner.

“The company has been the star of the pandemic and investors are hoping that like a supernova it will continue to shine for many years forward.”