Roblox(NYSE: RBLX) It was once a hot stock. The play platform developer was made public through a direct list on March 10, 2021. His actions began to negotiate at $ 64.50, and finally doubled up to a maximum record of $ 134.72 on November 19, 2021. At that time, investors were damaged by their rapid growth, their sticky ecosystem and their popularity with Tween players.
But at the time of this writing, Roblox’s shares are about $ 70. Lost its brightness as it caused its growth of pandemic, accumulated more losses and joined with Safety and regulation problems. Can you end up bouncing and generating millions of manufacturing for the next decade?
Image source: Roblox.
Roblox allows its users to create games and other experiences with a simple drag and drop system that does not require any prior coding knowledge. Its market also offers pressed assets and templates that further simplify this process. Its higher level users can use LUA, a popular script language for video games, to add more sophisticated functions.
Roblox’s creators can monetize their games with a coin in the game called Robux. This cycle promoted by creators feeds the growth of the Tirant platform more players and driving them to buy more Robux.
Roblox’s simplicity attracted many users among the pandemic, when most students stayed home and spent a long time in front of their computers. It is also building an advertising ecosystem as more brands make up virtual “metaavera“Worlds of your platform.
If we look behind Roblox’s growth in reserves, daily active users (dice), average daily active user reserves (ABPDAU) and total committed hours, we will see that their growth was slowed by 2022 after its growth was set up by Pandemic in 2021. Bears argued that Roblox was only a FAD growth and their growth in their long term. its platform.
Metric
2021
2022
2023
2024
Growth of reserves
45%
5%
23%
24%
Growth
40%
23%
22%
21%
Abpdau growth
4%
(14%)
0%
2%
Hours devoted a growth
35%
19%
22%
23%
Source of data: Roblox.
But by 2023 and 2024, the growth of Roblox reserves accelerated again as he expanded abroad and attracted older creators and players. Those most recent dice generated reserves less than their main audience of Tween users in the United States and Canada, but their hours of commitment continue to increase. This hook can open the way for higher Robux sales growth and stronger reserves in the future.
In the first quarter of 2025, Roblox reserves grew 31% year -on -year. His dice increased by 26% to 97.8 million, his Abpdau increased by 4% and their total hours dedicated to 30% to 21.7 billion. This acceleration counteracts the bassist notion, which is a fashion stock that will simply fade away and support the upward idea that its cycle promoted by creators will promote its long -term expansion.
Throughout the year, Roblox hopes that their reserves will grow from 21% to 23%, as their adjusted benefits before interest, taxes, depreciation and repayment (EBITDA) increase from 14% to 47%. But it is still deeply unprofitable on a generally accepted accounting base (GAAP), and it is still spent a lot of money by strengthening their digital safeguards for children, exchanging cash by the accumulated robux of their creators (their “developer change rates”) and expanding their cloud infrastructure.
With a market lid of $ 47.78 billion, Roblox traces 9 times this year’s reserves. It is not a bargain, but it does not seem so expensive either if its reserves can grow constantly for the two digits.
At present, analysts expect their reserves to grow on an annual compound rate (CAGR) from 20% from 2024 to 2027. Assuming that this growth rate can be maintained for eight more years, its annual reserves could reach $ 32.25 billion in 2035. If it still trains their reserves in the last year, its market lid would amount to $ 290.25 million during Next 10 years.
This gain could turn a $ 10,000 investment into more than $ 60,000 but will probably not generate millionaire manufacturers’ earnings unless you buy many more actions. Roblox could also face more growing pain over the coming years if he cannot balance the costs of protecting their younger users and expanding their cloud infrastructure with their first line growth.
Roblox may be a good investment for patients investors, but it will probably not become a millionaire manufacturer for the next decade. It is cut off a niche of great growth, but must maintain its safe platform and show that its business model is sustainable if it wants to evolve into a much larger company.
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