I think Roblox stock is a buy if you believe DAUs and hours engaged will return to growth over the next two to three years. The company's business model of selling virtual currency is highly attractive, and it has a ton of potential in advertising and sponsored searches with how much time users spend on the platform.
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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.
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 ...
Now, it should also be ... we have Roblox. As far as top growth stocks to consider in 2022 go, Roblox is a top stock many investors are looking at right now. Why? Well, Roblox is a key metaverse ...
Roblox has a market capitalization of US$37b, so it's too big to fly under the radar ... It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you ...
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. Stockholders will need to wait out the storm and keep their long position in Roblox.
RBLX closed out 2021 with 83% year over year revenue growth. RBLX coupled that strong top-line growth with solid adjusted EBITDA margin. Prior to the crash in tech stocks, positive free cash flow was a typically effective catalyst for premium valuations.
The 17 analysts offering 12-month price forecasts for Roblox Corp have a median target of 39.00, with a high estimate of 78.00 and a low estimate of 21.00. The median estimate represents a +30.04% increase from the last price of 29.99.
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.
Roblox Corporation (NYSE:RBLX) delivered a -49.72% return in the past 3 months. In November 2021, we also shared another hedge fund's views on Roblox Corporation (NYSE:RBLX) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
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.
Roblox Corp (NYSE:RBLX) The 16 analysts offering 12-month price forecasts for Roblox Corp have a median target of 34.00, with a high estimate of 61.00 and a low estimate of 21.00. The median estimate represents a +14.71% increase from the last price of 29.64.
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.
The 31 analysts offering 12-month price forecasts for NIO Inc have a median target of 30.38, with a high estimate of 66.84 and a low estimate of 21.94. The median estimate represents a +34.89% increase from the last price of 22.52.
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.
Roblox CorporationRoblox Corporation is an American video game developer based in San Mateo, California. Founded in 2004 by David Baszucki and Erik Cassel, the company is the developer of Roblox, which was released in 2006.
Today at 3pm, internet search giant Google announced its aquistion of startup game studio Roblox for a purchase price of 380 million dollars.
Reality star Paris Hilton will raise Roblox’s brand value when she launches a metaverse business on Roblox. The announcement is nothing new. Gaming firms like Glu Mobile tried to grow their user base by licensing celebrity names in their mobile games. In 2017, Glu said it would scale back on celebrity games.
In the third-quarter, Roblox posted revenue growing by 102% year-on-year to $509.3 million. Investors should notice the strong bookings, which increased by a solid 28% Y/Y to $637.8 million. Chances are good that the business momentum will continue into the current fourth quarter and the year ahead.
Growing concerns about Roblox being unsafe for children might hurt the stock. Management must assess the risks and proactively enforce rules to prevent child labor exploitation.
Roblox focuses on building social connections and engagement. It may offer more than just games. For example, the platform supports group learning or working. Chief Executive Officer David Baszucki said Roblox is a platform that invites people to connect with their friends. Creators and developers will continue developing its virtual economy.
Of the 11 analysts covering Roblox, the average price target is around $117.00 (according to Tipranks). Investors wary of the stock valuation may put more weight on opinions offered by bearish analysts. They have a price target as low as $70.00.
The stock of Roblox has pretty much stagnated since its IPO in March due to worries that the reopening of schools would cause engagement to fall on the platform.
Roblox started off simply as a platform where users could play games created by other users and share their own game creations to be played by others. However, if that was all there was to Roblox, then it would not likely be trading at a PS ratio of 40.
Let me give a brief explanation on how the Roblox is monetized. Roblox uses a freemium model, where games are free to play but advanced features and customizations are only unlocked through paying with an in-game currency called Robux, which can be purchased either through gift cards, ala carte or through subscription.
The key factor that drives monetization on the platform is engagement. The more engagement there is, the healthier the platform.
The four growth drivers that the company self-identified as a priority moving forward are:
Of the four growth drivers, Roblox considers international expansion the most advanced. Currently, the rest of the world ("ROW") is growing faster than the USA and Canada together, which is currently at only 25% of the traffic on the platform.
Up until now, Roblox has shown great success reaching the 13 and under audience. However, for Roblox to reach its goals, the platform will have to broaden its demographics into a brand that appeals to all ages. The company plans to do this in several ways:
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.
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.
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.
Meta Platforms, Microsoft ( MSFT) and Nvidia ( NVDA) are among the top metaverse stocks to watch in the metaverse space.
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.
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.
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.