META - Roblox: Lavish SBC And High Valuation Make The Stock Unattractive

2024-06-20 09:04:33 ET

Summary

• Roblox Corporation's bookings growth and KPIs have continued to perform very well, although some slowdown in Q2 and the rest of 2024 is expected.
• Earnings still continue to be deeply negative as shareholders' equity is being eaten away by high SBC. Good, but slow expansion in margins is still expected.
• RBLX stock's valuation continues to be excessive in my opinion, as very significant margin expansion and growth is being priced in.

Roblox Corporation ( RBLX ) has continued to grow in recent quarters since my previous article on the stock, with daily active users, bookings, and revenues seeing good and consistent increases. Yet, profitability has continued at an incredibly weak level, and the valuation appears to be excessive even with the great continued growth....

For further details see: