- Roblox’s metaverse has created a lot of hype. It seems like these days, marketing is more important than fundamentals.
- Although Roblox is the online gaming leader in the U.S., it doesn’t look close to achieving operating profitability moving forward.
- While it has been FCF profitable, it needs to depend on sustained strong bookings to justify its valuations.
- We think while it may still run up, we still wouldn’t consider it for investment at the current price and would only consider it for swing trading.
For further details see:
Roblox: Buy Only If You Are Absolutely Confident