Roblox, a gaming platform last valued at $29.5 billion in the private sector, is going public Wednesday on the New York Stock Exchange in another highly-anticipated debut for the booming online gaming space.
The stock was priced at $45, opened at $64.50, and was trading above $70 in the early going.
The company's proprietary game engine gives users the ability to create their own properties without learning to code. It then sells those user-made games on its popular app and shares 30 percent of the revenue from virtual purchases with creators.
Roblox paid $328.7 million to developers in 2020, up almost 200 percent from the year prior. Notably, more than half of the company's users are under the age of 13.
Craig Donato, chief business officer at the company, told Cheddar that the model thrives on the diversity of gaming experiences created by the global user base.
"You can think of Roblox as a universe made up of millions of immersive experiences that people can enjoy with their friends," he said. "So, you can be a star in a fashion show. You can DJ a beach party. You can snowboard down a mountain or build your own amusement park."
He added that eight million people around the world are contributing content to Roblox.
The way the model works is that Roblox sells players in-game currency called Robux, which players can then use to make in-game virtual purchases such as new skins for their avatars or other virtual features With the introduction of Premium Payouts in 2019, more than 1,250 developers earned at least $10,000 in Robux for their work. (The digital currency can be converted into cash.) The company anticipates more hefty payouts going forward.
After accounting for costs, Donato said the revenue-split with creators is closer to 50-50.
He noted that while the user base is still overwhelmingly young, older teenagers are its fastest-growing segment.
"Our players are very much growing up with us," he said.
An independent watchdog within the IRS reports that while taxpayer services have vastly improved, the agency is still too slow to resolve identity theft cases. And National Taxpayer Advocate Erin Collins says those delays are “unconscionable.” Erin M. Collins said in the report released Wednesday that overall the 2024 filing season went smoothly, though IRS delays in resolving identity theft victim assistance cases are worsening. It took nearly 19 months to resolve self-reported identity theft cases as of January, and Wednesday's report states that now it takes 22 months to resolve these cases.
Amazon.com Inc. surpassed $2 trillion in market value for the first time in afternoon trading on Wednesday. The push higher for Amazon’s stock market valuation comes a little more than a week after Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia’s chips are used to power many AI application and its valuation has soared as a result. Amazon has also been making big investments in AI as global interest has grown in the technology. Most of the company’s focus has been on business-focused products.
Climate change doesn’t just mean more extreme weather – it also leads to billions of dollars in lost productivity, tourism, and stresses infrastructure.
