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.
RBLX trade ideas
Stock Of The Day / 12.11.24 / RBLX12.11.2024 / NYSE:RBLX
Fundamentals. There was no significant news.
The stock was listed due to the gap and a smooth, non-volatile movement at the beginning of trading session.
Technical analysis.
Daily chart: Uptrend. There is an attempt to update 59.80 2-years high after a small pullback. The level is not marked on the chart, since the price did not show a significant reaction to it during the trading session.
Premarket : Gap Up on moderate volume.
Trading session: The stock continued its upward trend movement after an unsuccessful attempt to go below the opening price. The price met significant resistance at the level 60.00 after passing the level 59.19. After a sharp pullback, the price quickly returned to the level and entered a half-hour accumulation with a smooth tighten. We are considering a long trade.
Trading scenario: breakout (tightening) of level 60.00
Entry: 60.04 aggressive entry into the breakout with a small reserve for slippage. We do not expect a retest since accumulation with tightening is usually accompanied by a strong impulse movement.
Stop: 59.85 we hide it behind the last tail of the tightening.
Exit: After the breakout, we observe an impulse movement without a trend structure. It is optimal to take profit in parts for such movements upon reaching certain target RR profit (1/3, 1/4, etc.) with subsequent tightening of the stop. For example, we close part of the position upon reaching RR 1/3, with the continuation of the movement we pulled the stop to the profit level of 1/3, etc.
Risk Rewards: 1/4
Roblox Corporation Stock Quote | Chart & Forecast SummaryKey Indicators On Trade Set Up In General
1. Push Set Up
2. Range Set up
3. Break & Retest Set Up
Notes On Session
# Roblox Corporation
- Double Formation
* 012345 | Waves Survey
* 50.00 USD | Conditions Valid At 0.382)) Area | Subdivision 1
- Triple Formation
* Retracement Area | Uptrend Bias | Subdivision 2
* Pattern Configuration | Wave 3)) & 4)) | Subdivision 3
* Daily Time Frame Accumulation
Active Sessions On Relevant Range & Elemented Probabilities;
London(Upwards) - NYC(Downwards)
Conclusion | Trade Plan Execution & Risk Management On Demand;
Overall Consensus | Buy
$RBLX Weekly Chart VERY bullish A strong break of the $53 pivot changed the RBLX bearish sentiment, bullish with an upside price target of $72-$73 dollars if we can keep knocking out these levels. Its back above the 20, 50, 100, and 200 day Moving average! NYSE:RBLX luhhhhhh da kids! Short and sweet !
Roblox $RBLX Weekly Chart Break Out🚀 **Roblox ( NYSE:RBLX ) Weekly Chart Breakout!** 🚀
Roblox is making waves with a bullish breakout on the weekly chart. Eyes on volume and follow-through as momentum builds. Potential for upside acceleration if key resistance levels turn to support. 📈
#SPX500 AMEX:SPY NASDAQ:QQQ #BITCOIN #CRYPTO
Consolidation breakout
Stock Analysis: Roblox (RBLX)
The chart indicates a classic breakout pattern after a prolonged consolidation phase:
1. Consolidation Zone : The stock traded within a range of $30-$50 for over a year, forming a strong base.
2. Breakout Confirmation : The recent price action has decisively breached the key resistance at $50 , supported by increasing volume, which signals strong buying interest.
3. Price Target : Based on the range height (~$20), the breakout projects a potential upside target of $70 or beyond in the medium term, provided the momentum sustains.
4. Risk Levels : Key support is now around the breakout level of $50 ; a retest could provide an opportunity for disciplined entries.
Conclusion :
This breakout highlights a bullish trend reversal for RBLX. While the setup looks promising, prudent risk management and market conditions should always be considered before entering a trade.
RBLX - LTF liquidity being built for a neckline breakWe see this HTF supply zone that we've been rejecting off of and creating LTF liquidity for a deeper demand grab.
Essentially sellers are setting up for a push below the $48 neckline - to bring new buyers in for a potential HTF break of $55. We go down, to go further up. Right now, sellers are driving price up in order to add to our seller pool and bring price further down.
Looking for confirmations of rejection and selling volume to enter shorts here.
Happy Trading :)
A classic break and retest on RBLX! 🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
Roblox Rallied. Now it’s Pulled BackRoblox jumped to a two-year high earlier this month. Now some traders may see an opportunity in its latest pullback.
The first pattern on today’s chart is the bullish gap on October 31 after earnings and revenue beat estimates.
That rally pushed the video-game stock above its September 25 high (also near several peaks since October 2022). Last week, prices returned to test and hold that level. Has old resistance become new support?
Next, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA in August. That may suggest RBLX’s long-term trend has shifted higher.
Finally, heavy volume days on October 8 and October 31 may reflect demand for the stock.
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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
RBLX - UniverseMetta - Analysis#RBLX - UniverseMetta - Analysis
Exit from a protracted sideways trend and consolidation beyond the upper boundary of the channel, which may indicate potential growth to levels of 105 per share. Also, on the monthly timeframe, you can see an exit from a triangular formation with the formation of a 3-wave structure. The nearest target is 60. Then you can consider the levels by targets. It will also be possible to increase purchases during correction and retest of the support level.
Target: 60 - 105