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How to Buy Roblox Stock [2024] | Invest in RBLX

How to Buy Roblox Stock [2024] | Invest in RBLX
Diana Paluteder

Summary: Roblox (NYSE: RBLX) is a publicly traded company that develops video games. The most convenient way to buy Roblox stock is through reputable broker platforms like eToro and Interactive Brokers.

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

About Roblox

Roblox homepage. Source: roblox.com

Roblox Corporation (NYSE: RBLX) is an American publicly traded company that develops video games based in San Mateo, California. Founded in 2004 by Erik Cassel and David Baszucki, the company is the developer of Roblox, an online game platform that enables users to build games using the programming language Lua and play games created by other users.

The company generates revenue through selling the virtual currency Robux to its users, which can be used to purchase virtual items (such as clothing, accessories, and emotes for avatars) sold by the developer and creator community on the platform.

Roblox IPO 

Roblox IPO went public in March 2021 after a fierce year of growth, bolstered by social distancing restrictions triggered by the pandemic. The company forsook the traditional IPO process, opting to list its stock directly by allowing existing shareholders to sell shares straight to the open market.

The Roblox stock symbol is RBLX, and it trades on the NYSE exchange. You can acquire Roblox stock via multiple brokers, which we will overview later in this guide.

How to buy Roblox stock: Step-by-step

Roblox is a publicly traded company, meaning you can buy Roblox stock through a broker. The steps involved in purchasing RBLX shares are outlined in the following section in detail.

Step 1: Choose a broker

To buy Roblox stock online, you’ll need a brokerage account. Our top two picks are:

1. eToro

  • Commission-free stock trading; 
  • 2,000+ stocks from 17 exchanges;
  • Fractional shares available;
  • User-friendly platform.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

2. Interactive Brokers

  • Commission-free stock trading;
  • Global stock-trading on 90+ market centers;
  • Fractional shares available;
  • Extra income on fully paid shares;
  • Lowest financing rates for margin accounts in the industry;
  • No account minimum. 

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  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

While Roblox Corporation offers a unique blend of gaming and user-generated content, you may want to diversify your investment in the gaming sector. Here are other gaming stocks you might consider:

How to choose an online broker?

To buy Roblox stock online, you’ll need a brokerage account. Several platforms are available, but the right one will depend on your investment style (long-term buy-and-hold strategy or active day trading) and needs (e.g., whether you want to trade more advanced financial products such as options). When evaluating brokers, consider the following features:

  • Fees: Brokerage fees is a type of fee collected by brokers to execute your transactions or provide specialized services. However, today, the vast majority of online brokers offer commission-free stock and exchange-traded funds (ETF) trading;
  • Security: Pick a reliable broker by ensuring it is fully licensed by state regulatory authorities as well as FINRA and registered with the Securities and Exchange Commission (SEC);
  • Trading tools: Active traders may want more out of their brokerage accounts. Some brokers offer fully customizable platforms with comprehensive analysis tools or access to additional data for an extra cost. If such additions are unnecessary for your purposes, avoid paying extra for them. It’s usually a good idea to look for an easy-to-use platform with a competitive fee structure if you are new to stock trading. A dedicated section with investing tips and tricks is a bonus;
  • Access to market data: You should search for a platform that gives you access to solid market research and reporting tools to help you trade confidently with updated data;
  • Fractional stock trading: Fractional shares allow investors to buy stock or ETFs by the dollar amount instead of the number of shares; particularly helpful for investors who don’t have limited capital but want to build a diversified portfolio or are looking to set up a dollar-cost averaging strategy.

Step 2: Fund your account

Once you have selected a broker, the next step is funding your trading account. Remember, it can sometimes take up to three days for the funds to be deposited. 

Step 3: Research Roblox

When investing your money in the market, doing your research is crucial. If you want to buy RBLX stock, keep an eye out for the current Roblox stock price, as well as past price data, overall valuation, and company announcements regarding new launches or relevant news stories or press releases. 

The best place to start your research on a stock is to go through its public filings with the SEC. Conveniently, Roblox’s quarterly earning reports (form 10-Q), SEC filings, and letters to shareholders, as well as recent press releases, can be accessed directly on its website from its investor relations section. 

Step 4: Decide how much you want to invest in Roblox

Determining the amount you wish to invest in Roblox stock is a pivotal step in the investment process. Begin by assessing your financial situation, considering your short-term and long-term financial goals, risk tolerance, and current portfolio diversification. Avoid allocating funds that you might require in the immediate future or money set for emergencies.

For those looking to mitigate the impact of volatility, consider dollar-cost averaging, where you invest a fixed amount at regular intervals regardless of the stock price. This approach can potentially lower the average cost of your investment over time.

Step 5: Place your order and buy Roblox stock

Once you decide on the number of shares or the dollar amount you’d like to purchase, you can place your order. If you’re working with an advisor, tell them you’d like to buy Roblox stock and how much you can invest, and they’ll do it for you. If you’re using a brokerage account, simply log in and enter the ticker symbol RBLX in the search bar. 

For direct stock purchase, two order execution options will typically be available to you:

  • Market order: A market order is an order to buy the stock at the current market price that is generally executed immediately (subject to availability);
  • Limit order: A limit order is processed once the stock reaches your specified price. For example, imagine you want to buy Roblox stock at $30 or lower. You would then set the limit price at $30, and the order will only execute when the stock reaches the set price or lower;

More experienced investors might consider trading options contracts on Roblox shares. These instruments allow for leveraged positions in a security at a fraction of the cost of the underlying asset. For example, a call option allows the trader to profit if the price of the stock increases, and a put option enables them to profit if the stock price declines. However, it’s crucial to exercise caution; options are complex derivative products that are traded using a margin account.

Step 6: Monitor your investment in Roblox

Roblox is part of the tech and gaming sectors, as well as a leading name in the metaverse economy. But Roblox is not alone in this burgeoning domain; Meta Platforms (NASDAQ: META), the powerhouse behind the world’s largest social networking platforms, has also committed vast resources to augmented and virtual reality, signaling a robust belief in the metaverse’s potential.

Yet, this forward push hasn’t universally garnered positive reception. Notably, following Meta’s massive declaration on the metaverse, Meta’s stock value experienced a significant dip, decreasing as much as 25%. This decline, albeit compounded by a broader tech industry downturn, poses questions about the immediate profitability of the metaverse vision.

As a result, given the intertwined fate of Roblox and Meta in the metaverse domain, monitoring Meta’s performance can provide a broader understanding of the direction this sector might take.

Moreover, Roblox’s distribution heavily relies on major app stores, making it essential for investors to keep updated on news from Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG), and Microsoft (NASDAQ: MSFT), as their overarching control of app distribution channels can directly affect Roblox’s reach and profitability.

So, while “set it and forget it” is a solid strategy for a diversified portfolio of ETFs, for single stocks like Roblox, investors should keep a close watch on press releases, company health indicators such as revenue and user growth, as well as macroeconomic conditions. Then, depending on your financial goals, use that knowledge to reassess whether it’s best to hold onto the stock or sell it.

RBLX stock price today

Pros and cons of buying Roblox stock

Pros

Pros

  • Stable user growth: Roblox has demonstrated consistent user growth since the onslaught of the COVID-19 pandemic;
  • Diversified offerings: Roblox focuses on creating a whole ecosystem rather than one particular game or genre. As a result, the platform may be able to offer something for everyone;
  • Virtual money: Roblox collects the bulk of its revenue from in-game purchases made with its virtual money Robux while avoiding more intrusive monetization methods such as ads or loot boxes. This is also beneficial as users are incentivized to create content for Roblox’s games, continually updating the platform’s adventures.
Cons

Cons

  • Growth downshift: Roblox sales have slowed down significantly as online gaming popularity is shifting to pre-pandemic levels;
  • The company is not profitable: The company has yet to report a positive net income;
  • Reliance on young users: Because Roblox depends on children under 13, it must ensure its platform is a safe virtual playground for them by constantly censoring its content, shielding its platform from predators, and carefully handling the personal data of its younger users. Any missteps in those areas could endanger children and taint its brand;
  • Tumultuous audience: Social trends among the youth are fleeting. A new viral sensation could have Roblox users abandon the platform in droves. Therefore, the company’s long-term growth banks on its ability to attract older users;
  • No dividends: Roblox does not pay dividends to its stockholders.

How to sell Roblox stock?

You can sell Roblox stock if you see the company performing differently than you’d expected or if you’ve reached the financial goal you set when you first invested in the company.

If you’re working with an advisor, they can create a sale order for you. However, if you have your own broker account, you can simply log on, navigate to the stock’s detail page, input the number of shares or dollar amount you want to offload, and tap sell.

Common mistakes to avoid when investing in stocks

Mistakes are expected when investing in stocks but can be avoided if you recognize them. For an in-depth guide on investing mistakes, we have compiled a list of 17 common mistakes and tips for preventing them. But, for now, let’s list some of the most typical ones:

  1. Not performing your due diligence on the stock;
  2. Having unclear financial goals;
  3. Attempting to time the market;
  4. Failing to diversify;
  5. Letting your emotions rule the investment decision-making process.

In conclusion 

Most growth stocks that soared during the pandemic rally have suffered drastic sell-offs due to rising interest rates, inflation, and other macroeconomic challenges. 

While Roblox boasts an enthusiastic user base and continues to attract new players, it’s crucial to recognize that the gaming surge might not be eternal. Furthermore, Roblox remains a speculative stock, underscored by its current unprofitability and poor financial metrics.

But if you have faith in the company’s long-term concept and vision as well as in the future success of the metaverse, investing in Roblox could be a strategic addition to your portfolio.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about how to buy Roblox stock

What is Roblox?

Roblox Corporation is an American technology company that develops video games. The company is the developer of Roblox, an online game platform that allows its users to design their own games and play various games created by other users. 

How to buy Roblox stock online?

Roblox became a publicly traded company in March 2021, and its stock is available on the NYSE exchange under RBLX, which means you can buy shares of Roblox through your brokerage account. Simply navigate to Roblox’s detail page, decide how much you want to invest and hit ‘trade’ or ‘buy’.

Is Roblox stock a buy?

Whether Roblox is a suitable investment should be based on your risk tolerance, portfolio size, financial goals, and market experience. So always conduct your due diligence before trading. Also, note that past performance doesn’t guarantee future returns. 

Where can I buy Roblox stock?

You can buy Roblox stock at various online brokers such as Interactive Brokers (IBKR) and eToro.

Can I buy Roblox stock outside the United States?

Yes, you can buy Roblox stock from outside the United States if your chosen brokerage supports international trading. Ensure that your brokerage offers access to the U.S. stock market, and you will be able to purchase Roblox stock from anywhere in the world.

When is Roblox stock earnings date?

Earnings dates are usually announced a few weeks in advance and are subject to change. For the most accurate and up-to-date information, it’s recommended to check Roblox’s official investor relations page. ​​

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

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