RBLX Long

Roblox (RBLX) while unprofitable has led to negative P/E ratios + -700% ROE, -ROA, - ROIC with low quick and efficiency ratios. DE ratio also indicates RBLX is heavily leveraged which could lead to damaging long-term health. However, recently PB and PS indicated high growth potential from an investor viewpoint and investor bullishness. DE dropped drastically from 2023 to 2024 indicating a shift of long-term to short-term debt. This indicates that RBLX is shifting from a long-term viewpoint into shorter-term viewpoint which could be indication of a strategic shift. For RBLX, this would mean a takeover of other game companies and further solidify market dominance with increasing and developing userbase (younger), subscription model, and simulated ecosystem. Possible retracement from market sentiment and debt obligations, but then bullish continuance.

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