Calling all traders and degenerates! Let’s talk about the hype surrounding online gaming platform Roblox, and whether it’s still a buy…
This recent initial public offering (IPO) name just received analyst upgrades from pretty much every large investment bank out there.
Now, before we address what this means moving forward, let’s break down Roblox’s IPO process…
The stock opened for trading on March 10 with a listing price of $45 per share. But by midday, the stock had leapt over 50% and ended up closing at $69.50.
At last glance, Roblox Corp. (NYSE: RBLX) is up over 6% on the week and trading right around $73 a share as of Friday morning.
So now that the stock has all this bullish analyst coverage, you may be wondering…
Be careful when buying and chasing these new, attention-grabbing IPOs, as they’ve burned retail traders in the past.
That’s because investment banks get in early and sell to the public at a 50-plus percent premium. They pump prices as high as possible so they (and company insiders) can make boatloads of money when a stock soars to the moon out of the gate.
And now we’re seeing analysts left and right screaming “buy, buy, buy!” when it comes to Roblox. They’re raising price targets and all that fun stuff — and of courseCNBC “Mad Money” Host Jim Cramer is yapping about buying the stock for your kids’ and grandkids’ future!
Basically, the IPO party keeps raging on. And honestly, there’s no telling when the mania will end…
So today, let’s break down the recent craze surrounding our latest IPO darling. We’ll go over some noteworthy insider news to help clarify whether Roblox is still a buy. And we’ll break down Wall Street’s tried-and-true formula for getting rich off stocks that have just gone public.
As always, leave your thoughts in the comments below. Also don’t forget to subscribe to my YouTube channel to stay up to date with all things trading!
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