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Roblox | Where Kids Thrive, Stocks Pump and Gamers High FiveRoblox Economics: Teaching 13 Year Olds How to Out Monetize Wall Street RBLX surges 50% since our first signal so let’s explore its potential upside From PlayStation to Paychecks: How Roblox Gamified the Economy From hosting virtual concerts with millions of participants to offering user generated games rivaling major studios, Roblox has evolved into a cultural phenomenon nearly 20 years after its PC debut. It is reshaping the social gaming and entertainment landscape. CEO Baszucki Says Roblox Saves Lives; Haters Say It Destroys Wallets! Founder CEO David Baszucki shared: “Our mission is to connect 1 billion people with optimism and civility. This resonates deeply with me, as several parents have told me their children’s lives were saved through connections made on Roblox” Roblox was already a standout in last year’s Future 50 ranking for its unique value. Currently, over 3 million creators develop games and experiences using Roblox Studio, its proprietary development tool. The platform’s economy thrives on its in-game currency, Robux, rewarding creators based on user spending. For instance, Uplift Games, a Roblox-exclusive studio, supports a 60 person team. Two core growth drivers -Content loop:High quality content attracts users, who then inspire the creation of even more content. - Social loop:Increased participation enhances the platform's appeal to new users. Exploring Roblox’s Expanding Universe -User Generated Content (UGC):Like YouTube, Roblox empowers creators of all skill levels to share their visions. - A Growing Metaverse:Beyond gaming, it hosts virtual events and educational activities, positioning itself as a hub for social interaction. -Broadening Demographics: Once dominated by young users, Roblox now attracts older audiences. In Q3 2024, users aged 13+ made up 60% of its user base, up from 57% the previous year. Roblox by the Numbers -Daily Active Users (DAUs):89 million, up 27% YoY, with strong growth in APAC (+37%) and a 59% rise in Japan. -User Engagement:20.7 billion hours logged, growing 29% YoY. -Q3 Bookings:$1.1 billion (+34% YoY), reflecting robust user spending. -Regional Bookings:North America (62%) and Europe (19%) dominate. The October 2023 PlayStation launch doubled Roblox’s console presence, boosting both users and bookings. To attract console studios, Roblox announced a 70% revenue share for items priced $49.99 or higher, aiming to encourage premium content. Challenges and Opportunities -Short Seller Allegations: In October, Hindenburg Research accused Roblox of inflating metrics and neglecting child safety, highlighting its ongoing unprofitability. Despite initial concerns, the claims lacked substantial evidence. -Profitability Issues: Operating margins remain negative (-30%), with high infrastructure, safety, and AI costs. Expense management is critical for turning a profit. - Advertising Growth: Partnerships with DoubleVerify and Shopify pave the way for in-platform ads and merchandise. With users averaging over two hours daily, this represents untapped potential. -Virtual Economy Improvements: Enhanced discovery features increased payers by 30% to 19 million, with a 6% rise in bookings per DAU. - Cash Flow Strength: Free cash flow hit a record $218 million (+266% YoY), driven by efficient cost management. - Stock-Based Compensation (SBC): SBC equals 29% of revenue, diluting shares (~3% annually). While common in tech, this high level raises concerns for long-term investors. Future Outlook Roblox raised its FY bookings guidance to $4.36 billion (+24% YoY). Achieving sustainable growth while tackling profitability challenges, content moderation, and investor dilution will determine its long-term success. The company’s ability to navigate these issues will shape its legacy in gaming and beyond.
NYSE:RBLXLong
by moonypto
Roblox Corporation (RBLX) AnalysisCompany Overview: Roblox Corporation NYSE:RBLX is a trailblazer in the gaming and metaverse sectors, offering a platform that enables users to create, share, and play immersive experiences. Its user-generated content model drives high engagement while keeping operational costs low, positioning the company for sustained growth in the evolving digital entertainment space. Key Drivers of Growth: Strategic Partnerships: Roblox’s partnership with Monarch focuses on enhancing operational efficiency and customer satisfaction, key factors that can improve both user retention and financial performance. User-Generated Content (UGC): The platform thrives on UGC, ensuring a constant flow of new and engaging experiences while minimizing content development costs. This model not only drives long-term engagement but also fosters a community-centric ecosystem that scales naturally with user activity. International Expansion: Localization efforts and targeted marketing in international markets open new revenue streams. By tailoring the platform to diverse demographics, Roblox aims to capture significant market share in regions where gaming and metaverse adoption are on the rise. Platform Monetization: The introduction of enhanced monetization tools, including developer incentives and virtual item sales, contributes to revenue diversification and aligns platform success with creator growth. Investment Outlook: Bullish Stance: We are bullish on RBLX above $45.00-$46.00, supported by its innovative business model, expanding global footprint, and strong user engagement. Upside Target: With the company’s strategic initiatives and robust growth prospects, we target $75.00-$77.00, reflecting the potential for significant gains as Roblox scales its metaverse ambitions. 📈 Roblox—Leading the Future of Immersive Entertainment! #Metaverse #GamingInnovation #UGC
NYSE:RBLXLong
by Richtv_official
When Virtual Worlds Collide: The Price of Digital Illusions?In the ever-evolving landscape of digital entertainment, a storm is brewing that challenges our perceptions of virtual reality and corporate responsibility. Roblox, a titan in the gaming industry, finds itself at the epicenter of a controversy that transcends mere numbers and pixels. As allegations of inflated user data and compromised child safety measures emerge, we are compelled to question the very foundations upon which our digital utopias are built. This saga serves as a stark reminder of the delicate balance between innovation and integrity in the tech world. It challenges us to look beyond the dazzling facades of virtual playgrounds and confront the sobering realities that may lurk beneath. As investors, parents, and digital citizens, we are called to critically examine the metrics and safeguards that shape our online experiences and those of our children. The Roblox controversy is not just a cautionary tale; it's a catalyst for a broader dialogue about the future of digital platforms and their impact on society. It prompts us to envision a world where transparency and user safety are not just buzzwords but the cornerstones of technological progress. As we stand at this crossroads, the choices we make and the standards we uphold will determine whether our digital futures will be defined by illusion or authenticity, by profit or protection. In this pivotal moment, we are all stakeholders in the outcome. The questions raised by this controversy challenge us to become more discerning consumers, more vigilant guardians, and more engaged participants in shaping the digital landscapes we inhabit. As we ponder the true cost of our virtual indulgences, we must ask ourselves: Are we ready to demand more from the architects of our digital worlds, and in doing so, forge a path towards a more transparent and secure online future for all?
NYSE:RBLXShort
by signalmastermind
Roblox Stock Plunges 9% After Hindenburg ReportRoblox Corporation (NYSE: NYSE:RBLX ), the popular online gaming platform, suffered a sharp decline in its stock price after Hindenburg Research released a damning short report. The report accuses Roblox of inflating key metrics, persistent losses, and raising serious concerns about child safety on its platform. As both technical and fundamental indicators signal trouble, investors are now left to assess the potential fallout from these accusations. Checkout Hindenburg's Allegations and Financial Woes The Hindenburg Research report, published on Tuesday, sent Roblox’s stock tumbling by over 9% in premarket trading. The short seller claims that Roblox (NYSE: NYSE:RBLX ) has consistently misled investors about its Daily Active Users (DAUs), accusing the company of inflating this key metric by 25-42%. Hindenburg further suggests that many DAUs include duplicate or alternate accounts, such as bots used to "farm" in-game goods, making the reported user engagement metrics highly misleading. Additionally, the report highlights Roblox’s persistent financial losses, stating that the company has not turned a profit since going public. Over the last twelve months, Roblox (NYSE: NYSE:RBLX ) has recorded losses totaling $1.07 billion, despite its impressive $27 billion market valuation. Hindenburg argues that Roblox’s high price-to-sales ratio of 8.6 far exceeds that of its gaming industry peers, reflecting unrealistic growth expectations. The report also raises alarming safety concerns, alleging that Roblox’s moderation systems are insufficient to protect its predominantly young user base from exposure to inappropriate content and predatory behavior. Hindenburg claims that Roblox (NYSE: NYSE:RBLX ) has adopted a “growth at all costs” approach haha but that's insane, saying they prioritized inflated metrics over the safety of its users. In response, Roblox (NYSE: NYSE:RBLX ) has remained silent, declining to comment on the report. This lack of transparency has only added to investor concerns, as shares continued to fall throughout the trading session. Technical Outlook From a technical perspective, Roblox's stock is exhibiting significant weakness. After forming a bullish flag pattern in early September 2023, which suggested a potential upward move, the pattern ultimately failed as the ceiling of the flag broke down following so many factors Ps the release of the Hindenburg report. The stock is now trading within a falling wedge pattern, a typically bearish formation. As of the time of writing, NYSE:RBLX is down 4%, with the stock trending lower over the past few sessions. The moving averages (MA) are beginning to form a “dead cross” pattern, where the short-term moving average crosses below the long-term moving average. This is a classic indicator of potential extended bearish momentum in the coming weeks. The Relative Strength Index (RSI) currently sits at 30.76, just above the oversold threshold of 30. While an RSI this low can sometimes signal an opportunity for a reversal, the broader technical landscape suggests that Roblox’s stock may continue to face downward pressure. Moreover, the recent candlestick pattern shows a bearish harami, which further indicates that a reversal is unlikely in the near term. Conclusion Hindenburg Research's scathing short report has undoubtedly shaken investor confidence in Roblox (NYSE: NYSE:RBLX ). Too sad hoping it won't affect our gaming experience. The allegations of inflated user metrics, persistent financial losses, and safety concerns present significant risks to the company's reputation and growth trajectory. Roblox’s financial struggles, including its failure to turn a profit, are compounded by an overvalued stock price, making it increasingly vulnerable to further downward pressure. From a technical standpoint, the stock’s current position within a falling wedge pattern and the emerging dead cross signal additional bearish momentum. With the RSI hovering near oversold levels and no clear signs of a reversal, Roblox may continue to slide in the short term. Investors should exercise caution and closely monitor how Roblox (NYSE: NYSE:RBLX ) responds to these allegations. Until the company can provide clarity or address the concerns raised by Hindenburg, NYSE:RBLX may face continued volatility. Long-term investors may want to wait for more stability in both the company's fundamentals and its stock chart before considering any moves.
NYSE:RBLXShort
by DEXWireNews
$RBLX - Roblox Bear CaseRoblox problems 1. MMO Platform - Admin cannot faithfully & confidently moderate the expansive player base. Although majority of incidents will remain isolated & unheard of it's only a matter of time until a full scale youtube expose campaign runs viral through the inter webs & presents a critical flaw in the chainlink of Roblox accountability + safety. 2. The annual revenue, cash flow, debt, etc do not correlate to neighbouring assets of similar market caps. 3. They are currently experiencing problems with in game ad placements uk.themedialeader.com 4. There is no plausible route to a higher multiple of profitability. In my personal opinion the following scenarios could occur to generate more cash. - Malicious Membership System - Overindulgence in Ads - Sale of stock - Investor Capital ( Debt + ) Those 4 options although temporarily provide cash relief will not solve the problems outlined above, particularly the issue of disparity when it comes to market cap & $$ etc. In summary a strong bear case can be made for $RBLX. These MMO platforms are profitable as companies & often thrive under small private team management VS large scale corporate structure ( See Club Penguin history ) Free money shorting post election Nov - Dec 2024 until Nov 2025 ( 1 year time frame ). $45 -> $16 approx.
NYSE:RBLXShort
by bryptoplox
2
Roblox Stock Dives 29% as Firm Misses Q1 Revenue EstimatesRoblox ( NYSE:RBLX ), an online gaming platform and game creation system, missed analysts' expectations in Q1 CY2024, with revenue up 22.3% year on year to $801.3 million. The company's next quarter's revenue guidance of $867.5 million also underwhelmed, coming in 7.6% below analysts' estimates. Roblox ( NYSE:RBLX ) made a GAAP loss of $0.43 per share, improving from its loss of $0.44 per share in the same quarter last year. Roblox ( NYSE:RBLX ) is best known for its wide assortment of user-generated content and is best known for its wide assortment of user-generated content. Video gaming has gradually taken more share of entertainment time since the 1970s, with ubiquitous mobile devices driving a surge in "snackable" games that can be played on the go. The business models of games publishers have become less volatile due to digitization of distribution, in game monetization, and an increasing dependence on surefire hit franchises. Covid-driven lockdowns accelerated adoption and usage of videogames, a trend that has not slowed. Roblox's revenue growth over the last three years has been mediocre, averaging 15.2% annually. This quarter, Roblox ( NYSE:RBLX ) reported decent 22.3% year-on-year revenue growth, falling short of analysts' expectations. Guidance for the next quarter indicates Roblox ( NYSE:RBLX ) is expecting revenue to grow 27.4% year on year to $867.5 million, improving from the 15.1% year-on-year increase it recorded in the comparable quarter last year. Ahead of the earnings results, analysts were projecting sales to grow 49.5% over the next 12 months. Roblox's Q1 results struggled to find many strong positives in these results. Its full-year bookings guidance of 15% year-on-year growth missed analysts' expectations, and investors are punishing the stock because management said it would grow at 20%+ annually for the next few years at its November 2023 Investor Day. On top of that, Roblox ( NYSE:RBLX ) announced it would start calculating adjusted EBITDA differently, raising some questions. Overall, the results could have been better. The company is down 29.3% on the results and currently trades at $27.6 per share. Roblox ( NYSE:RBLX ) cut its annual bookings forecast on Thursday, in a sign that people were dialing back on spending within its video-gaming platform amid an uncertain economic outlook and elevated levels of inflation. The company's shares fell 18% in premarket trading. The gaming industry is grappling with lower engagement, which is expected to keep growth in the PC and console market below pre-pandemic levels through 2026, according to research firm Newzoo. The number of hours gamers aged 13 or more spent on Roblox's platform grew by 19% in the first quarter, the lowest growth rate for the company in about two years. Roblox ( NYSE:RBLX ) has turned to digital ads to diversify its revenue. Earlier this month, it started displaying virtual billboards featuring content from brands such as Walmart (WMT.N) and Warner Bros Discovery (WBD.O).
NYSE:RBLX
by DEXWireNews
ROBLOX 46 AFTER EARNINGS ? Q1 2024 Performance: On February 7th, 2024, Roblox Corporation reported its first-quarter 2024 financial results. The company’s earnings per share (EPS) for the quarter were -$0.52, surpassing the consensus estimate of -$0.57 by $0.05. Roblox’s revenue during the quarter was $1.13 billion, exceeding analysts’ expectations of $1.05 billion. The company’s revenue growth was impressive, showing a 25.3% increase year-over-year1. User Engagement and Growth: Roblox’s success is driven by its strong user base and developer community. The platform witnessed significant growth in average daily active users (DAUs), which surged by 79% to 42.1 million. Hours engaged on the platform reached 16 billion, reflecting a 20% year-over-year increase. Bookings grew by an impressive 161% year-over-year. Analyst Expectations: Analysts at Roth MKM maintain a buy rating on Roblox shares and have set a price target of $554. JP Morgan analyst Cory Carpenter upgraded Roblox from Neutral to Overweight, raising the price target from $41 to $48. Carpenter highlighted the company’s consistent bookings growth over the past four quarters and projected first-quarter bookings of $927 million5. Market Confidence and Future Prospects Roblox’s innovative platform, expanding user base, and strong financial performance have instilled confidence in investors. As the company continues to enhance its offerings and attract more users, its stock price may continue to rise.
NYSE:RBLXLong
by NYRUNSGLOBAL
Cathie Wood’s ARK Stacks RobloxA World of Endless Possibilities Roblox ( NYSE:RBLX ) isn't just a game; it's a universe where users become creators, architects of their own virtual realms. With its user-generated content model, Roblox ( NYSE:RBLX ) empowers millions to build, share, and explore immersive experiences. From bustling metropolises to fantastical realms, Roblox ( NYSE:RBLX ) fosters a sense of limitless creativity, inviting players to shape their own destinies within its virtual confines. ARK Invest's Vote of Confidence Amidst the digital renaissance, Roblox ( NYSE:RBLX ) has garnered the attention of seasoned investors like ARK Invest, led by the visionary Cathie Wood. As ARK dumps millions into Roblox ( NYSE:RBLX ) stock, signaling confidence in its long-term prospects, the platform's significance in the online gaming ecosystem is underscored. With each investment, ARK reaffirms Roblox's position as a pioneering force in the metaverse. Expanding Horizons and Capturing Imaginations Roblox's allure extends far beyond its gaming roots. Through strategic partnerships and innovative initiatives, the platform continues to push the boundaries of virtual entertainment. From virtual concerts to educational experiences, Roblox ( NYSE:RBLX ) transcends conventional gaming, offering a glimpse into the future of interactive media. Empowering Creativity and Collaboration At the heart of Roblox ( NYSE:RBLX ) lies a thriving community of creators, united by a shared passion for innovation and expression. Through collaborative endeavors and user-generated content, Roblox fosters a culture of creativity and inclusivity, where anyone can find their voice and leave a lasting impact on the digital landscape. Charting a Course for the Future As Roblox ( NYSE:RBLX ) charts a course for the future, fueled by ARK Invest's vote of confidence, the platform remains steadfast in its commitment to fostering innovation and fostering meaningful connections. With the recent launch of its self-custodial wallet app, Roblox ( NYSE:RBLX ) continues to blur the lines between virtual and reality, offering users new avenues for self-expression and financial empowerment.
NYSE:RBLX
by DEXWireNews
RBLX Roblox Corporation Options Ahead of EarningsIf you haven`t bought the dip on RBLX before the previous earnings: Then analyzing the options chain and the chart patterns of RBLX Roblox Corporation prior to the earnings report this week, I would consider purchasing the $42.5usd strike price Calls with an expiration date of 2024-3-15, for a premium of approximately $2.79. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NYSE:RBLXLong
by TopgOptions
Roblox Stock Soars as Metaverse Vision Pays OffRoblox ( NYSE:RBLX ), the youth-centric gaming platform, has sent shockwaves through the market with its latest earnings report, surpassing analyst expectations and painting a promising picture for its future. With a surge in daily active users and robust revenue growth, Roblox ( NYSE:RBLX ) is not just a gaming platform anymore; it's a glimpse into the burgeoning metaverse.* Breaking Down the Numbers In the fourth quarter of 2023, Roblox ( NYSE:RBLX ) reported a loss of 52 cents per share, beating analysts' expectations of a 55-cent loss. But what really caught investors' attention was the staggering $1.13 billion in bookings, surpassing predictions of $1.05 billion. This signifies not only a substantial year-over-year growth from $899 million but also a testament to Roblox's ( NYSE:RBLX ) ability to monetize its expansive virtual ecosystem. Investing in the Metaverse Roblox's ( NYSE:RBLX ) strategic investments in building its version of the metaverse are paying off handsomely. With over 5.5 million immersive experiences ranging from gaming to social gatherings, concerts, sports events, fashion shows, and even educational content, Roblox ( NYSE:RBLX ) has become more than just a gaming platform—it's a virtual universe where creativity knows no bounds. Guidance and Outlook Looking ahead, Roblox ( NYSE:RBLX ) is optimistic about its future prospects. The company expects to generate bookings of $925 million for the current quarter, surpassing Wall Street's target of $903 million. Moreover, its full-year 2024 forecast of $4.21 billion in bookings exceeds analyst expectations of $4.06 billion. This bullish outlook reflects Roblox's ( NYSE:RBLX ) confidence in its ability to continue attracting users and monetizing its platform effectively. CEO's Vision Chief Executive David Baszucki's vision for Roblox ( NYSE:RBLX ) is ambitious yet achievable. With a goal of attracting over 1 billion daily active users, Baszucki emphasizes the importance of fostering a community characterized by optimism and civility. He highlights Roblox's strong network effects, driven by content, social connections, and communication, as well as its investments in immersive experiences, advertising, and artificial intelligence. Market Response Unsurprisingly, Roblox's ( NYSE:RBLX ) stellar performance has been met with a surge in its stock price, jumping 11% to $45.08 in afternoon trades following the earnings report. This surge reflects investors' confidence in Roblox's ability to capitalize on the growing demand for virtual experiences and its position as a leader in the metaverse space. Conclusion Roblox's ( NYSE:RBLX ) latest earnings report showcases its continued growth trajectory and solidifies its position as a key player in the evolving metaverse landscape. With a rapidly expanding user base, innovative experiences, and a visionary leadership team, Roblox is poised for further success in the years to come. As the metaverse continues to capture the imagination of both users and investors alike, Roblox ( NYSE:RBLX ) stands out as a prime example of the limitless possibilities that virtual worlds offer.
NYSE:RBLXLong
by DEXWireNews
Roblox Adds XRP as a Payment Option The popular online game platform with a user base of over 200 million monthly active users has now embraced XRP as a payment method through the in-game payments startup Xsolla. Roblox is accessible on various platforms, including Windows, macOS, Android, iOS, Xbox One, and PlayStation 4. It boasts a daily active user count of 65.5 million, with nearly 44% of users aged under 13. Notably, in the first quarter of 2023 alone, Roblox users spent nearly $773 million on in-game purchases.
Long
by DEXWireNews
1
RBLX Inverse Head & ShouldersRoblox has seen a move higher with gaming-related stocks this week on the heels of creating an inverted head and shoulders pattern. Price is trending above all MAs(8,21,34,50,100,200) wiht the short MAs rising and crossing above the long MAs indicating a short-term bullish trend. The PPO indicator shows the green PPO line rising and above a rising purple signal line indicating short-term bullish momentum. Both lines above the 0 level and rising indicates intermediate to long-term bullish momentum. The TDI indicator shows the green RSI line rising and crossing above the 60 level which indicates a short-term bullish trend behind price, as does the RSI line trending above the purple signal line and trending in the upper half of the Bollinger Bands. The RSI line trending between 40-60 levels indicates an intermediate to long-term bullish trend behind price. Assuming that price continues to move higher and closes above the neckline in the $48 area, a measured move will put our price target at $69. Measurement is taken from the lowest point of the head to the neckline which is roughly $21. Add that to anticipated opening price around the $48 above the neckline and we get $69 as our target and take profit level. Buy price for me was at $43.34. Stop-Loss is currently at $37.05. I tend to wait for a close above the neckline before entering a trade, this trade was initiated a little early and prior to pattern confirmation making it a little more risky. Stop-Loss orders help to reduce risk, and on any single trade my total risk can never be more than 1% of my total portfolio; if I lose on a trade, the dollar loss can never be more than 1% of my total portfolio value.
NYSE:RBLXLong
by PrepForProfit
1