This incentivizes Roblox users to make content, which keeps revenue and free cash flow growing. Investors don't have to buy into the hype of the metaverse to justify buying this stock. Roblox is a buy at these levels just on its opportunities as a top entertainment platform.
Full Answer
Is Roblox stock a good investment?
Jan 29, 2022 · Roblox stock is tanking. Here's why it might be time to buy. Investors are dumping growth stocks amid soaring inflation and tightening U.S. Federal Reserve policy, which could increase the cost of ...
Is Roblox worth investing in?
16 hours ago · Unfortunately, for investors in Roblox (NYSE: RBLX) and RBLX stock, this has meant fresh new 52-week lows today. In earlier trading, RBLX stock hit a low of $31.62 per share, down more than 77% ...
Should you invest in Roblox stock right now?
Feb 01, 2022 · Why buy: The stock's valuation The company's initial public offering was in March 2021, shortly after many tech stock prices peaked. Roblox's strong growth, financials, and hype in a …
Is it too late to buy Roblox stock?
Apr 03, 2022 · 16 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Roblox in the last twelve months. There are currently 1 sell rating, 5 hold ratings and 10 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "buy" Roblox stock. View analyst ratings for Roblox or view top-rated stocks.
Is Roblox stocks a good buy?
Roblox stock is one of the top metaverse stocks to watch in the current stock market rally. The video game platform boasts solid sales growth in recent quarters amid the company's potential in the emerging metaverse investing theme. Shares are now pulling back sharply and are significantly off their 52-week high.22 hours ago
Why invest in Roblox stock?
Why buy: Strong cash flows Roblox invests a lot of money into its platform for servers and infrastructure as well as research and development. Still, overall, the company can be very profitable as it continues growing revenue and users.Feb 1, 2022
Is Roblox stock a good 2022 buy?
While 2021 was very good to Roblox ( RBLX -5.80% ) shareholders, 2022 is off to an arguably poor start. This gaming platform company with metaverse potential has been caught up in the broader growth stock sell-off and is trading down about 15.7% year to date.Jan 13, 2022
Is Roblox stock profitable?
Roblox has never been profitable, but the company's Q4 net loss widened by a wide margin. In the quarter, revenue grew 83% YOY to $569 million, but the net loss grew 144% to $143 million. The company's free cash flow also declined compared to the year-ago period, from almost $119 million to $77 million in Q4 2021.Feb 22, 2022
Why is Roblox stock so high?
Roblox shares surged in extended trading Monday after company reported strong year-over-growth during the third quarter. Roblox also said it plans to credit developer accounts on its platform $6.8 million for payouts it estimates were lost during a Halloween weekend outage.Nov 9, 2021
Why did Roblox stock go down?
The videogame company reported record numbers of daily active users and hours engaged for the fourth quarter. Roblox reported a record number of daily active users and hours engaged for the fourth quarter, but shares were sinking after the company disclosed a wider-than-expected loss.Feb 16, 2022
Will Roblox rebound?
Roblox is expected to rebound from current price levels.Mar 4, 2022
Why metaverse stocks are falling?
Meta shares are now down nearly 35% year to date as its core ad business is under threat and investors question the billions it plans to invest in its metaverse ambitions....Metaverse Stocks in Free Fall.CompanyShare performance % YTDSectorMicrosoft−10.2%Gaming, hardware5 more rows•Feb 16, 2022
Should I get Robux?
Yes, Roblox Premium is worth it for dedicated fans. Subscribers get a monthly Robux allowance with a greater value than the cost of the subscription, plus several (essentially free) bonuses on top.Feb 15, 2021
Does Roblox lose money?
For one thing, the main reason Roblox lost money in the quarter is that it spent heavily in paying its game developer partners well, in spending on research and development, and in improving "infrastructure and trust and safety" -- all items I view as crucial investments for a company that aspires to be a growth stock.Nov 14, 2021
Is Roblox stock volatile?
Roblox only performed its direct listing in 2021, so its valuation history is not much long. Over the past six months, Roblox has traded at an average EV/sales multiple of about 16.9x, even though its valuation rage has been quite volatile as seen in the next graph.Jan 11, 2022
Is Roblox a buy right now?
14 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Roblox in the last year. There are currently 1 sell rat...
Are investors shorting Roblox?
Roblox saw a increase in short interest during the month of February. As of February 28th, there was short interest totaling 23,160,000 shares, an...
When is Roblox's next earnings date?
Roblox is scheduled to release its next quarterly earnings announcement on Monday, May 9th 2022. View our earnings forecast for Roblox .
How were Roblox's earnings last quarter?
Roblox Co. (NYSE:RBLX) posted its earnings results on Tuesday, February, 15th. The company reported ($0.25) EPS for the quarter, missing analysts'...
What price target have analysts set for RBLX?
14 analysts have issued 12 month price objectives for Roblox's shares. Their forecasts range from $45.00 to $125.00. On average, they anticipate Ro...
What are Wall Street analysts saying about Roblox stock?
Here are some recent quotes from research analysts about Roblox stock: 1. According to Zacks Investment Research, "Roblox Corporation develops and...
Who are Roblox's key executives?
Roblox's management team includes the following people: Mr. David Baszucki , Founder, Pres, CEO & Chairman (Age 57, Pay $570.36k) ( LinkedIn Pro...
What is David Baszucki's approval rating as Roblox's CEO?
144 employees have rated Roblox CEO David Baszucki on Glassdoor.com . David Baszucki has an approval rating of 98% among Roblox's employees. This...
Who are some of Roblox's key competitors?
Some companies that are related to Roblox include Shopify (SHOP) , Square (SQ) , Snowflake (SNOW) , Dassault Systèmes (DASTY) , Activision Bli...
NYSE: RBLX
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NYSE: RBLX
There are at least three reasons you need to think about adding Roblox to your portfolio and one red flag to consider before doing so.
Why buy: Huge advertising potential in the metaverse
The Roblox platform is a digital world with metaverse characteristics where more than 47 million daily active users can interact and play games made by developers. Roblox has a digital currency called Robux, which users purchase with cash or credit card. Robux sales are the primary revenue driver for the company.
Why buy: Strong cash flows
Roblox invests a lot of money into its platform for servers and infrastructure as well as research and development. Still, overall, the company can be very profitable as it continues growing revenue and users.
Why buy: The stock's valuation
The company's initial public offering was in March 2021, shortly after many tech stock prices peaked. Roblox's strong growth, financials, and hype in a hot market created a pretty expensive valuation for investors to swallow. Shares debuted at just under $70 per share and hit as high as $141, a price-to-sales ratio of more than 24.
Why sell: User growth slowing down
Roblox seemed to benefit from the pandemic lockdowns; quarterly user growth was between 40% and 50% year over year in 2019, and it accelerated to as high as 97% year over year in 2020. It began to cool in 2021 -- user growth was 79% year over year in the first quarter, followed by 29% in the second quarter and 31% in the third.
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About Roblox
Roblox Corporation develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that allows developers and creators to build, publish, and operate 3D experiences and other content.
Roblox (NYSE:RBLX) Frequently Asked Questions
13 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Roblox in the last year. There are currently 1 sell rating, 3 hold ratings and 9 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "buy" Roblox stock. View analyst ratings for Roblox or view top-rated stocks.