Roblox Stock Has Soared 27.9% This Year, And You Can Still Buy It for $1

Roblox (NYSE: RBLX) went public in March through a direct listing at $64.25 a share. Since that time, the stock price for this online gaming platform has followed a somewhat volatile trajectory, but it is currently trading nearly 28% above its initial asking price.

With around 46 million daily active users and a strong potential for growth as the company taps a new older market and expands into non-gaming events, it’s not surprising the stock is growing in demand. Roblox’s current price of around $82 per share means that buying in doesn’t require a huge amount of capital. But many beginning investors may not have that much spare cash to devote to a single company, even one they would love to invest in.

The good news is that you don’t need $82 in order to buy a stake in Roblox stock. Here’s why.

Image source: Getty Images.

How you can buy a share of Roblox for just $1

Buying shares of Roblox with as little as $1 is actually not that hard. Here’s what you need to do:

Research the company carefully. Although you may only be investing a dollar, you still owe it to yourself to do your due diligence. This can help you avoid losing the money you put in. It also helps you become a better investor so you’ll be prepared to start trading larger sums of money as your portfolio balance grows. You’ll want to make sure you understand how the company makes money and confirm that you believe in the long-term viability of its business model so you’ll be comfortable holding the stock for a while. That’s because investing for the long term reduces your risk and gives your investment a chance to grow.

Find a brokerage firm offering fractional shares: Many brokers now provide the opportunity to buy partial shares (commonly known as fractional shares), rather than restricting you to purchasing full shares only. This is sometimes referred to as dollar-based trading because you specify how many dollars you want to invest rather than how many shares you want to purchase. If you have only $1, make sure the broker not only allows fractional shares, but that it lets you purchase stock in such small increments. Some brokers that provide the opportunity for fractional share trading impose a higher minimum than $1.

Put in an order to purchase Roblox. When you do, you’ll specify that you want to spend $1 to buy the stock. And make sure the brokerage you choose doesn’t charge a commission on trades. Most discount online brokers have eliminated trading fees. If your broker charged you, it wouldn’t make sense to invest with just $1 because the cost of the commission would very likely be more than your investment.

Once you’ve completed these steps, you’ll be able to buy whatever portion of a share of Roblox $1 affords you at the time of your purchase. If the share price is $82, you’d end up owning about 0.012 of a share of the company. Although this may not seem like much, you still earn the same return on investment as anyone else who owns a piece of Roblox. If the stock price doubles, for instance, your $1 would turn into $2.

Fractional shares are great because they allow you to purchase stock in companies you believe in, rather than just in companies you can afford to own a full share in. So if you think Roblox has solid long-term potential, why not buy in — even if you have just $1 to do it?

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Christy Bieber has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Roblox Corporation. The Motley Fool has a disclosure policy.

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