is roblox a buy

Full Answer

Is Roblox worth investing in?

Vident Investment Advisory LLC bought a new position in shares of Roblox Co. (NYSE ... LLC now owns 4,763 shares of the company’s stock worth $360,000 after purchasing an additional 121 shares ...

Is Roblox stock a good investment?

Since the Roblox IPO, the stock is up more than 60% and the company’s value is more than $40 billion. And now Wall Street analysts are pushing the interest even further after Stifel’s rating was released. In the long run, Roblox is looking more like a safe play for investors. But there are risks to consider. Roblox put together a strong 2020 which will unlikely be comparable to 2021.

Is Roblox stock a buy now?

Tyler Craig, InvestorPlace 7 Triple-A Rated Stocks to Buy Now “Roblox, as I noted in my previous column, has multiple strengths, including impressive growth, good monetization, and its alliance ...

Should you buy Roblox stock right now?

They just revealed what they believe are the ten best stocks for investors to buy right now... and Roblox Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys. Rich Smith owns shares of Roblox Corporation. The Motley Fool owns shares of and recommends Roblox Corporation.

Is Roblox a buy stocks?

Key Data Points If Roblox updates investors and informs them that trends have turned upward, it could be an excellent time to buy the stock. After falling so steeply off its high, Roblox is trading at a price-to-free-cash-flow (P/FCF) multiple of 25, near the lowest in its history.

Is Roblox a Buy Sell or Hold?

Roblox has received a consensus rating of Hold. The company's average rating score is 2.38, and is based on 8 buy ratings, 6 hold ratings, and 2 sell ratings.

Why is Roblox stock dropping?

Roblox RBLX –8.98% stock was sinking after the videogame firm missed Wall Street's expectations for first-quarter adjusted revenue and reported a wider-than-expected net loss. Roblox (ticker: RBLX) reported bookings, a form of adjusted revenue, of $631.2 million, which was down 3% from the first quarter of 2021.

Is Roblox a good growth stock?

Summary. Roblox is down an astonishing 75% from all time highs. The company continues to report solid revenue growth, but investors should focus on decelerating bookings growth. The company is generating free cash flow, but investors should not count on a return to former multiples.

Will Roblox stock recover?

A rebound in RBLX's shares is likely to happen in 2H 2022, when the company's bookings growth accelerate again benefiting from an easier base for comparison. But a recovery to the $70 price level is quite challenging considering the implied valuation multiples and the weakness in Roblox's US & Canada region.

What is the future for Roblox?

RBLX stock broke out in November 2021, lifted by the ecstatic buying of Nasdaq stocks. The party proved short-lived in 2022. Roblox stock is down very far from its 52-week high....What's the Fair Value of RBLX Stock?MetricsRangeConclusionDiscount Rate11.5% – 10.5%11.00%Terminal Revenue Multiple4.8x – 5.3x5.1x1 more row•Mar 28, 2022

Will Roblox go up?

Roblox finished 2021 with $1.9 billion in revenue, a terrific 108% jump over the prior year. The company also reported a 40% year-over-year increase in daily active users (DAUs) to 45.5 million. User engagement was also strong, as evident from a 35% year-over-year increase in hours engaged to 41.4 billion.

Did Roblox get bought by Microsoft?

Microsoft bought it two years ago for $2.5 billion. Roblox isn't so much a single game as a platform for lots of different ones. Users can log in and choose from millions of different options. The app is free and so are most of the games.

Is Roblox owned by Google?

Today at 3pm, internet search giant Google announced its aquistion of startup game studio Roblox for a purchase price of 380 million dollars.

Is Roblox profitable 2022?

For 2022, revenues are expected to be in the range of $203 million to $207 million per month. Using an estimated revenue run rate of $200 million per month, the full year forecast is $2.4 billion. This implies a growth rate of 26% from 2021. Another, positive factor is its ability to generate positive free cash flow.

What is Roblox stock prediction?

The 16 analysts offering 12-month price forecasts for Roblox Corp have a median target of 37.00, with a high estimate of 61.00 and a low estimate of 21.00. The median estimate represents a +39.78% increase from the last price of 26.47.

Does Roblox stock have potential?

The analyst is also impressed by the firm's growth figures; Roblox managed to grow its active users from 2018 to 2020 at an eye-popping CAGR of 65%, and estimates are that over the next three years the company will continue to grow at a healthy CAGR of 28%.

Is Roblox growing in 2021?

Platform had 45.5 million daily users on average last year Roblox released its financial results for the full year 2021, reporting a 108% increase in revenue to $1.9 billion. It's the first full year report from Roblox since its IPO in March 2021, with bookings growing 45% year-on-year to reach $2.7 billion.

Why is Roblox stock so high?

Roblox reported having 32.6 million daily active users at the end of 2020, up 85% from the year-ago period. Revenue jumped 82% in the year to $924 million. It had a net loss of $253 million in 2020, vs. a $71 million loss in the prior year, according to the Roblox IPO filing.

Why did Roblox stock rise?

Roblox went public in March. Roblox RBLX +4.42% 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.

NYSE: RBLX

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The tween gaming platform remains a polarizing stock

Roblox ( RBLX -3.04% ) has been a volatile stock since its direct listing in March. The gaming company's stock started trading at $64.50 per share, far above its reference price of $45, and briefly topped $100 in June.

What does Roblox do?

Roblox's platform enables users to create simple games without any coding knowledge, share them with other users, monetize them with an in-game currency called Robux, and play other users' games.

How fast is Roblox growing?

Roblox was already popular with tween users prior to the pandemic, but stay-at-home measures caused its growth in revenue and bookings (the amount of money spent on Robux) to spike last year:

Roblox's core growth metrics are peaking

During the second quarter, Roblox's daily active users (DAUs) rose 29% year-over-year to 43.2 million, its average bookings per DAU (ABPDAU) grew slightly to $15.41, and its average hours engaged rose 13% to 9.7 billion. But on a sequential basis, Roblox's ABPDAU dipped as its average hours engaged stayed flat:

Can Roblox overcome the looming slowdown?

As Roblox's top-line growth decelerates, investors will likely scrutinize its widening losses and its overwhelming dependence on tween users.

Is Roblox's stock worth buying?

Roblox might eventually evolve into the YouTube of kid-created games, but its stock could remain volatile as it faces tough post-pandemic comparisons, concerns about its widening losses, and the risks regarding its dependence on tween creators and gamers.

What to like about Roblox

There are many reasons investors might find Roblox a compelling investment opportunity. To start, it has demonstrated an excellent execution track record, evident in its strong financials -- revenue surged almost threefold from $313 million in 2018 to $924 million in 2020, thanks to the growth in Roblox's user base.

What not to like about Roblox

So far, we have looked at the positive sides of investing in Roblox. But our job won't end until we consider Roblox's valuation.

Is Roblox a buy?

Roblox has a lot going for it as it expands its use case and rides the metaverse trend. So long as it can continue to attract and delight its developers and users, there's a good chance that it will sustain growth for years to come.

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.

A leading gaming company

Roblox has built a platform with multiple worlds where gamers can do almost anything. On the Roblox platform, gamers can build their worlds, play games, and build immersive experiences. Lil Nas X -- a famous rapper -- even created a virtual concert on Roblox where he performed in front of 33 million users.

A potential metaverse pick

Roblox -- as with many gaming stocks --could become a critical part of the metaverse in the coming years. Roblox has already built an immersive experience that many of its users see as their second home.

Is it a buy?

The company is valued at 21 times sales -- a steep multiple, especially when so many other stocks that previously traded at high multiples like this have fallen recently.

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.

What to like about Roblox

There are many reasons investors might find Roblox a compelling investment opportunity. To start, it has demonstrated an excellent execution track record, evident in its strong financials -- revenue surged almost threefold from $313 million in 2018 to $924 million in 2020, thanks to the growth in Roblox's user base.

What not to like about Roblox

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Is Roblox a buy?

Roblox has a lot going for it as it expands its use case and rides the metaverse trend. So long as it can continue to attract and delight its developers and users, there's a good chance that it will sustain growth for years to come.

RBLX Stock IPO

The Roblox stock initial public offering (IPO) via direct listing occurred on March 10 with a suggested price of 45 per share. With a direct listing, no new shares in the company are created and sold. Nor did the Roblox IPO raise any capital. Instead, current investors begin selling already existing shares based on demand when trading opens.

Roblox Fundamental Story

The company's eponymous "Roblox" game is the biggest mobile game of 2020 in the U.S. in terms of revenue, according to Sensor Tower. It surpassed "Candy Crush," which had been the top game for the past three years.

Roblox Stock Is A Metaverse Investing Play

What is the metaverse? The metaverse is considered a next-generation version of the internet. Technologists describe the metaverse as a persistent, shared, 3D virtual environment. There, people meet for activities ranging from playing games to conducting business. It incorporates such technologies as virtual reality and augmented reality.

Metaverse Stocks To Buy And Watch

Meta Platforms, Microsoft ( MSFT) and Nvidia ( NVDA) are among the top metaverse stocks to watch in the metaverse space.

Roblox Stock News

On Sept. 1, Roblox announced the launch of Vans World, an interactive Vans skateboarding world experience. Vans World is a metaverse playground where players can perform tricks and customize Vans gear and apparel, while hanging out with their friends.

RBLX Stock Price And Technical Analysis

Roblox stock surged more than 42% on Nov. 9, breaking out past a 103.97 buy point in a consolidation — according to IBD MarketSmith chart analysis. The catalyst was the company's strong earnings.

Is Roblox Stock A Buy Right Now?

Roblox stock is one of the top metaverse stocks to watch in the current stock market rally. The video game platform boasts huge sales growth in recent quarters amid the company's potential in the emerging metaverse investing theme.

Signals & Forecast

Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development.

Support, Risk & Stop-loss

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

Is Roblox Corporation stock A Buy?

Roblox Corporation holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.

Insiders are negative selling more shares than they are buying in Roblox Corporation

In the last 100 trades there were 1.27 million shares bought and 2.04 million shares sold. The last trade was done 16 days ago by Reinstra Mark who sold 12.7 thousand shares. In general the insiders are selling more stocks than they buy. There can be a variety of reasons for this, but in general it can be considered as a negative signal.

Golden Star Signal

This unique signal uses moving averages and adds special requirements that convert the very good Golden Cross into a Golden Star. This signal is rare and, in most cases, gives substantial returns. From 10 000+ stocks usually only a few will trigger a Golden Star Signal per day!

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featured in The Global Fintech Index 2020 as the top Fintech company of the country.

Roblox (RBLX)

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Roblox Corporation - Hold

Zacks' proprietary data indicates that Roblox Corporation is currently rated as a Zacks Rank 3 and we are expecting an inline return from the RBLX shares relative to the market in the next few months.

Style Scorecard

The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports.

Chart for RBLX

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 which allows developers and creators to build, publish and operate 3D experiences and other content.