Roblox’s stock value almost doubled since its initial public offering at the beginning of 2021. Is it still worth an investment?
Short answer: probably yes than no. For your info, Roblox isn’t likely to disappear or burst like an artificial bubble in the nearest future.
The game has been around since 2006 — it’s a whole generation of players. And recent changes in the gameplay and digital environment of Roblox were sparked by the need to keep the maturing players.
Starting at a price of $69.50, Roblox saw a peak at $134.72. And now it’s worth 104.51 — a dramatic dip, but it’s showing a slow, stable recovery.
At the moment, there are 47.3 million active users. They play games, design games, use simple and intuitive tools, as well hang out, host flashmobs, create cosmetics and outfits, and so on.
Roblox is a giant sandbox. Its potential for fun is limitless. Besides, it’s picked the latest metaverse trend — a concept where gaming, business, events, and other forms of entertainment become unified.
Recent music concerts, that attracted millions of views and in-game hours, prove that Roblox has a high potential for player engagement.
The game has established a $481 million free cash flow, showing a 102% revenue. The overall gains in cash in Q3 were $1.9 billion, with just $244 million of debt.
Roblox’s current price-to-sales ratio is 28.96, which isn’t that bad for a new company. (New in terms of stock trading).
And actually, now might be a great time to invest in Roblox. Its stock value dipped, creating a favorable entry point. At the same time, Roblox’s development potential and fan base haven’t gone anywhere.
And the metaverse approach is a “long game” that will allow Roblox to keep the fans who will grow older in the future. Such foresight can yield significant profits.
And what do you think about investing in Roblox? Let us know in the comments!