RBLX - 2 Green Flags and 1 Red Flag for Roblox Stock
2023-11-14 08:24:00 ET
Investors are warming up to Roblox (NYSE: RBLX) stock again. The entertainment platform reported strong third-quarter results in early November that have helped propel the stock to excellent year-to-date gains. Roblox investors are looking at nearly 40% returns, compared to the 14% rally in the S&P 500 .
It wasn't all good news in the report, though. Roblox is still struggling to demonstrate a clear path toward profitability, for example. Yet investors will find more to like in this report than to be worried about.
Engagement is a foundational growth metric for any entertainment business, and Roblox is performing very well on this score. Its user base was up 20% in Q3, and hours of engagement rose at the same healthy clip, to 16 billion.
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2 Green Flags and 1 Red Flag for Roblox Stock