Many of these people will eventually cash out, even if only to diversify their portfolios. In other words, insiders hold far more shares than anything currently on the market.

Another five venture funds hold another 300 million shares, and employees have another 75 million. Without the typical lockup periods of IPOs, insiders have more leeway to liquidate shares.Īs of the firm’s listing, eight insiders hold almost 150 million shares. What happens after the initial pop depends on how quickly insiders eventually cash out. It’s only natural that investors would have snapped up all 200 million available shares like hotcakes at a fair.īut then comes the more challenging part: should you buy in after the initial pop? “Most professional investors believe there will be heavy retail interest in this name, without much price constraint,” Bernstein analyst Todd Juenger wrote. Wall Street analysts have already predicted a meme stock revolution. Three hundred people generated $100,000 or more. 1,250 developers earned $10,000 or more in digital currency in 2020.

This virtuous cycle has given Roblox a powerful network effect in the game development world. Meanwhile, the wider choice of games means better experiences for players, drawing even more gamers into the Roblox orbit.

Today, programmers create games using the Roblox platform, earning them money in the process. And unlike videogame companies like Zynga (NASDAQ: ZNGA) that rely on hard-to-predict blockbusters, Roblox has created a far broader ecosystem of gamers and developers.

The kid-friendly videogame company counts almost 200 million active monthly users, with over half under age 13. Make no mistake: Roblox is a phenomenal company. Patient investors willing to wait will likely find a better entry price as more Roblox shares become available. On the other hand, direct listings will drip-feed shares into the market long after the initial IPO - often for six months after the fact. Usually, a traditional IPO means a massive one-time sale of stock by underwriters like Goldman Sachs. Roblox’s unusual choice of a direct listing, however, gives patient investors a way out.

How to invest in roblox stocks