Roblox, a gambling company that was preparing to go public this month, has decided to postpone its IPO until next year. This is a sign that DoorDash and Airbnb’s rave market for IPOs over the past week has been making the price of stocks hard exactly.
Company co-founder and chief executive David Baszucki announced the decision in a memo to employees on Friday, saying the wait provides “an opportunity to embrace our specific process for employees, shareholders and future investors, both large and small improve.”
DoorDash, the largest grocery shipping company in the country, started trading at an IPO of $ 102 on Wednesday, but ended the day 86 percent to close at $ 189.51 per share. The next day, Airbnb, a home rental company, rose 113 percent from $ 68 to $ 144.71 per share on its first day of trading.
A number of companies went public before the end of the year. However, the startling results have raised concerns about a new stock market bubble and raised questions about whether valuations of the unprofitable startups were disconnected from reality.
With much of the world stuck indoors during the coronavirus pandemic, people have come to companies that help them work remotely, deliver food and other products, and provide entertainment online. However, it is unclear whether these companies will be able to sustain the same interest when the world returns to normal.
The news of the Roblox delay was first reported by the Wall Street Journal.
Roblox has been popular since the pandemic began, especially with children. An offering prospectus last month stated that there were an average of 31.1 million active users per day for the first nine months of 2020, up 82 percent year over year, but lost $ 203 million over the same period . Within the Roblox online universe, players’ avatars can interact and play millions of unique games set in different worlds from tropical islands to haunted castles. Players pay for premium memberships as well as items and clothing for their avatars.