Roblox Shares: Price, Dividends and Performance
Roblox is one of the most followed technology stocks by investors today and operates in a particularly innovative sector.
How much can you make with Roblox stock?
Get up-to-date and precise information on Roblox stock with its current price, dividend yield, analysis and our opinion.
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This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Roblox: Our key take-aways
- Stock exchange: NYSE
- Market Index: S&P500
- Dividend 2021: $0
- Dividend forecast 2022: $0
- 1 year performance: -41.44%
Should I buy Roblox stock?
After the sharp drop in its stock price, Roblox stock may represent an interesting buying opportunity.
Although current analyst forecasts are relatively negative, the investment capabilities of this newly-listed company could allow it to significantly increase its profits in the long-term.
Buying this stock today may therefore allow for a low-cost purchase and the possibility of future capital gains.
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How can I buy shares in Roblox ?
To buy Roblox on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Roblox to your stock portfolio.
To invest in Roblox, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.
How much are Roblox shares?
See price chart below to follow Roblox stock price in real time.
Why Roblox shares could go up:
Several current elements in the macro and micro-economic analysis of Roblox indicate a significant upside potential for its stock price, including:
- A revolutionary system: Roblox was able to quickly establish itself in the market with a simple block-based system for creating video games without experience.
- Efficient monetization: the company decided to make its software free while finding an efficient way to monetize it by charging for certain additional features. The platform also allows for the sale of clothing, accessories, gestures and other virtual goods.
- Pioneer status: Roblox has been the pioneer in its business, which is also a niche sector. As a result, competition is few and far between.
- Strong revenue growth: Roblox's revenues have increased significantly in recent years due to the retention of a share of each transaction made on the platform.
- More and more subscribers: Similarly, the number of subscribers to the platform has been increasing year after year and this trend is expected to continue as Robloc gains popularity.
- Pandemic benefits: Roblox's business benefited from the Covid-19 pandemic that hit the world in 2020 and 2021 with the boom in home-based activities.
Why Roblox shares could go down:
However, there are some risks to investing in Roblox stock as some elements are leaning more towards a decline in the price of this stock including:
- The end of the pandemic : as the Covid-19 pandemic seems to be coming to an end, Roblox could see its subscribers decrease due to a lack of time to spend on its platform.
- A strong dependence on the AppStore and Google Play Store: Roblox shows a strong dependence on these two mobile application distribution systems that still generate a large part of its revenues.
- Security issues: the system has also often been criticised as presenting a risk to children despite the efforts put in place to counter it such as text filtering, content moderation systems or automated systems.
- No dividend: finally, the fact that the company does not pay any dividend will be a disincentive to some potential shareholders.
Can I buy Roblox stock online?
Yes! You can buy Roblox shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Roblox shares?
Short selling of Roblox shares is only possible in Canada through a margin account.
If you do not have such an account and are investing with a registered investment vehicle, you will only be able to sell Roblox shares that you already own.
It is also possible to bet on the price of this stock falling by using derivatives such as CFDs or options.
What investment vehicles in Canada can hold Roblox stock?
Roblox shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
The purchase of Roblox stock can be done individually by placing a stock market order from a platform offered by a broker.
But some investors choose to invest in a basket of stocks including Roblox stock in order to diversify their investments through certain funds such as ETFs and mutual funds.
Roblox share price history over 10 years:
Time period | Growth | High | Low |
---|---|---|---|
1 semaine | -10.28% | 50.66 | 40.86 |
1 mois | 20.02% | 52.87 | 36.04 |
3 mois | -50.59% | 90.31 | 36.04 |
6 mois | -38.82% | 141.60 | 36.04 |
1 an | -41.44% | 141.60 | 36.04 |
Roblox dividends and payment dates
In 2021, Roblox did not pay a dividend to its shareholders.
Historically, the company has never paid its shareholders. This is mainly due to it being a recently listed company, but also to the need for the group to accelerate its growth by reinvesting its profits.
Although Roblox has not announced a dividend in 2022, it could decide to change its distribution policy in the years to come.
What is the dividend yield for Roblox over the last 10 years?
The yield on Roblox shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Roblox stock:
A critical analysis of Roblox stock:
Fundamental analysis of Roblox stock over the medium to long-term currently shows many negative signals with the following indicators:
- Growth potential: Roblox's business shows significant growth potential with expectations of a 64% increase in revenues by 2024.
- A good financial situation: the company's financial situation is excellent with strong investment capabilities.
- Positive consensus: the consensus of analysts who study this stock rate it as Buy or Overweight.
- High price target: the average analysts' price target is relatively far from the current price and reflects significant upside potential.
- Low profitability: Roblox's profitability remains relatively low at this time given the numerous investments made.
- High valuation: Based on current prices, the company's valuation seems particularly high, especially in light of its tangible assets.
- Downgraded forecasts: In recent months, analysts' opinions and revenue forecasts have been revised downwards.
- Significant differences in opinion: Analysts' estimates for the evolution of Roblox Group's business show significant differences, reflecting poor visibility of the business.
- Disappointing earnings reports: Finally, and historically, Roblox has often published results below expectations.
A technical analysis of Roblox stock:
The technical analysis of the Roblox share also seems particularly degraded, with the majority of sell signals in the medium and long-term.
- The RSI is currently at 100, which suggests an overbought signal for the stock.
- The short and medium-term stochastics are sending a strong sell signal while the long-term stochastic is sending an oversold signal
- The MACD which is at 12.26 is the only indicator that gives a buy signal on the Roblox stock
- The MA5, MA10 and MA20 simple and exponential moving averages are sending a strong sell signal as are the MA50, MA100 and MA200 exponential moving averages. The simple moving averages MA50, MA100 and MA200 are sending a buy signal.
- The next technical supports for this stock are located at 37.18 and 28.13 and the next resistances are located at 54.14 and 62.05.
Who is Roblox?
Roblox Corp is an American technology company.
The company develops and builds a human co-experience platform that enables the shared experience of billions of users. It owns a platform powered by user-generated content inspired by games, entertainment, social media or toys.
Roblox strives to constantly improve the way its platform supports shared experiences. Users of this platform have a virtual identity in the form of an Avatar that allows them to interact and express themselves freely.
The geographical distribution of Roblox's sales is as follows
- The United States and Canada with 67.7% of sales
- Europe with 18.6% of sales
- Asia Pacific, Australia and New Zealand with 7.6% of sales
- The rest of the world with 6.1% of the turnover
Who are Roblox’s competitors?
Roblox has very few competitors and most of them are indirect competitors that do not offer an identical solution. Potential opponents include:
- FlowPlay: This company develops community-based virtual worlds for gamers around the world with four flagship games that are Casino World, Vegas World, Live Game Night and ourWorld on an immersive gaming platform.
- Epic Games: This American development studio is also a video game distributor based in North Carolina. It is 40% owned by the Chinese giant Tencent.
- Unity Software: This San Francisco-based video game software development company developed the Unity licensed game engine for creating games and other applications.
- Mojang Studios: finally, Mojang Studios is a Swedish video game studio that is behind the game Minecraft. It was acquired in 2014 by the Microsoft Group for $2.5 billion.
Who are Roblox’s partners?
To boost its growth and market presence, Roblox regularly establishes strategic alliances with other leading companies. Recent partners include:
- Nike: The sports giant signed a partnership with Roblox to create a virtual world called "Nikeland" on the Roblox platform with fields, buildings and arenas where players can compete.
- Sony Music Entertainment: This company has signed an agreement with Roblox to develop innovative music experiences for the Roblox community. The objective is to promote some of Sony's artists.
- Ralph Lauren: This American fashion brand has partnered with Roblox to offer a holiday-themed experience with a virtual clothing collection.
- Tencent: The partnership with Tencent aims to create a joint venture to educate on fundamentals, game design, digital citizenship and entrepreneurial skills.
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