is roblox a good long term investment

While Roblox might be a good long-term investment, it's equally important to choose a good entry point. The enthusiasm after its IPO has bid up the stock a lot. Even after the recent pullback, the stock is trading nearly 50 percent above its IPO price of $45.

Full Answer

Is Roblox a growth stock to buy?

The stock trades at a high valuation, which may limit investors' near-term returns. But Roblox is definitely a growth stock you'll want to keep an eye on.

Is Roblox a good business model?

Roblox’s innovative business model fits perfectly into this trend and it should grow by leaps and bounds to take advantage of the growth in this market segment. Is Roblox a good long-term investment? Roblox has created a large network of content and community with more than 32 million daily users and the network is still growing.

What is Roblox’s (rblx) stock forecast in 2025?

What is Roblox’s (RBLX) stock forecast in 2025? After listing, investors continued to bid the stock price higher and RBLX reached a high of $77 on March 16. Since then, the stock has pulled back by nearly 13 percent. After the initial euphoria, investors are probably re-assessing the stock’s rich valuation. This might have led to a stock decline.

Can Roblox continue to grow year-over-year growth?

Roblox will come up against tough year-over-year growth comparisons in the near term. User engagement spiked during the pandemic, and due to the uncertainty about how that will trend as more of the entertainment options that COVID-19 took off the table become available again, management is not giving further earnings guidance for 2021.

Is Roblox a good company to invest?

Shareholders will need more patience betting on Roblox's strong prospects. The company is a great buy as young gamers spend more time on the platform. But even after falling from the $141.60 high set in November 2021, the stock could get cheaper. The market will remain irrational longer than some will expect.

Is Roblox undervalued?

Undervalued Stocks: Roblox Even after the downgrade, Goldman has assigned a price target of $50 for the stock. This would imply an upside potential of 35%. Clearly, the stock is undervalued even after discounting the slowdown concerns. Beyond the near-term concerns, Roblox is possibly the best metaverse play.

Is Roblox going to be 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.

Is Roblox a Buy or sell?

Roblox has received a consensus rating of Hold. The company's average rating score is 2.31, and is based on 7 buy ratings, 7 hold ratings, and 2 sell ratings.

What is a fair value for Roblox?

Analysis. Roblox's fair value is $35.88.

Why is Roblox dropping?

Roblox 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.

Will Roblox stocks 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.

Is Roblox popularity declining?

Roblox finished the quarter with about 588.5 million shares outstanding, compared with the year-ago quarter's 291.1 million outstanding shares. Revenue rose to $537.1 million from $387 million in the year-ago quarter, while bookings declined to $631.2 million from $652.3 million in the year-ago period.

What will Roblox be in 2030?

Roblox is enjoying outstanding revenue growth right now, which analysts expect to continue. If we conservatively assume that Roblox clocks a 30% annual revenue growth rate for the next nine years, then its revenue at the end of 2030 could increase to $20 billion.

Is Roblox a buy Zack?

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.

Can I buy Roblox on Robinhood?

Roblox stock will be on Robinhood, with the trading app set to offer investors the opportunity to purchase RBLX stock when it goes live.

How does Roblox make money?

Roblox earns about 48.9% of Robux revenue as profit. The other 51% is divided between the game developer, the App Store, and payment processing fees. Roblox makes up 35% of its revenue via Robux purchases from Apple's App Store and 19% of its revenue via purchases from the Google Play store.

What is a RBLX?

Rob lox ( RBLX) is an online gaming platform enabling users to play and create games in a variety of genres using the company’s own proprietary programming engine, the Roblox studio. The company generates most of its revenue through micro-payments using its native Robux currency, which users purchase with real money and then use to gain other ...

Is Roblox a good company?

Roblox’s first quarterly results as a publicly listed company were surprisingly good; so good in fact that RBLX share price jumped 20% – from $64 to $77 – the day that the results were announced. The company missed on its EPS expectations, but this was about the only negative thing to come out of it.

Is Roblox defending itself?

Roblox has vowed to defend itself – but history proves that even Google’s YouTube couldn’t fudge this issue, and the outcome, however it falls, is likely to be costly for the company. Free Stock Tools - Financhill. Close. Yes.

Is Roblox a reliant app?

Also problematic is the fact that Roblox is heavily reliant on app stores for the downloading of its platform – a model which is highly vulnerable to competition pressure and the future policies of the app stores themselves.

Is Roblox an immersive game?

Yes, other applications are the best at their own thing – YouTube for video streaming, Ste am for games distribution – but no-one is creating the immersive ecosystem that Roblox is building.

Is Roblox being sued?

But there are other, more tangible risks on the horizon. The first is that Roblox is being sued by the National Music Publishers’ Association. The NMPA alleges that Roblox illegally used its members music on the gaming platform, and in the process made “hundreds of millions of dollars” off of such use.

How much did Roblox lose in the first quarter?

Roblox reported a loss per share of 46 cents for the first quarter on revenue of $387 million, up 140% year over year. The company's net loss for the quarter was $134.2 million. In the first quarter, daily active users, or DAUs, rose to 42.1 million, up 79% year over year, with 87% growth in DAUs outside of the U.S. and Canada and 111% growth in DAUs over the age of 13. Users spent 9.7 billion hours on the platform, up 98% year over year.

Is Roblox available in China?

In 2019 Roblox and Tencent formed a strategic partnership to bring Roblox to China. Chinese regulators restrict access to online games in order to prevent youngsters from becoming addicted to them, but coding platforms with gaming features may be exceptions. That's why the Chinese version of Roblox has an "edu" in the URL and calls itself Roblox Education. A coding program called K-12 STEM (science, technology, engineering, and math) is expected to draw some 40 million to 50 million users as part of efforts to advance science, technology, and innovation capabilities among Chinese nationals, according to Steven Ma, senior vice president of Tencent.

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What is Roblox building?

What Roblox is building is a platform that incentivizes millions of developers to come and create content that can, in turn, attract potentially billions of users, which is Buszucki's long-term vision for the company.

When did Roblox go public?

Roblox went public in March at a high valuation and a market cap of nearly $40 billion. After a couple of months of ups and downs, that's about what it's valued at now. Investors bought the stock expecting big returns from this high-growth business. The key to that hoped-for growth will be getting more content on the platform.

Why Roblox stock is falling

After listing, investors continued to bid the stock price higher and RBLX reached a high of $77 on March 16. Since then, the stock has pulled back by nearly 13 percent. After the initial euphoria, investors are probably re-assessing the stock’s rich valuation. This might have led to a stock decline.

Roblox's stock forecast in 2025

Currently, only one analyst, Stifel Nicolaus, covers the stock. The firm has a buy rating and a target price of $85 for the stock. The target price represents a potential upside of 26 percent for the stock from the current market price.

Is Roblox a good long-term investment?

Roblox has created a large network of content and community with more than 32 million daily users and the network is still growing. This has created a network effect, which will help in monetization for the gaming platform.

Investors should consider the entry point for buying RBLX stock

While Roblox might be a good long-term investment, it's equally important to choose a good entry point. The enthusiasm after its IPO has bid up the stock a lot. Even after the recent pullback, the stock is trading nearly 50 percent above its IPO price of $45.