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  Roblox remains a top growth story, but the stock is now priced for perfection after a major run. The immersive gaming platform faces more child safety lawsuits and engagement concerns, but record user engagement and new safety tools show continued platform strength. The stock valuation is stretched at over 12x 2026 bookings and 95x 2025 free cash flow, with growth expected to normalize back to 20%. Roblox offers long-term upside, but I recommend caution at current levels above $125 and suggest waiting for a better entry point. Roblox Corporation  ( NYSE: RBLX ) has had a major run this year, reducing the appeal of the stock. The immersive gaming platform remains one of the great growth stories, but Roblox is priced for perfection, and any hints at internal  problems will hit the stock. My  investment thesis  remains Neutral on the stock after this run-up. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclai...

  Roblox reported a blockbuster Q3'24 with bookings growth soaring 35%, over $100 million above analyst targets. The mobile gaming platform is now a cash flow generation machine despite headlines of large GAAP losses. Despite the jump to $50, the stock is still cheap at 6x forward EV/S targets, especially with the opportunity for bookings growth to continue topping 30%. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » To no surprise here,  Roblox Corporation  ( NYSE: RBLX ) reported a blockbuster quarter. The size of the beat was impressive, but the mobile gaming company has a consistent history of reporting strong growth. My  investment thesis  remains ultra-Bullish on  the stock, with the surge only generally matching the boost in the business. Read the full article on Seeking Alpha  Disclosure: No position mentioned. Please review the disclaimer ...

  Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Update - Oct. 8, 2024 Hindenburg announced a short on Roblox. The mobile gaming company rejects the short report mostly focused on questions on user metrics, not the bookings numbers.  The research firm notably points how large reported losses while ignoring the strong free cash flows due to how the company has to report bookings. The short report is hard to take serious.  Update - Aug. 1, 2024 Roblox is slipping after reporting strong Q2 numbers and guiding up on 2024 bookings. The dip could be related to the CFO leaving. The stock only trades at ~4x EV/S targets for 2025.  Bookings for 2024 are expected in the $4.18-$4.23 billion range, up from $4.00-$4.10 billion.  Free cash flow forecast was raised to $505-$535 million from $350-$420 million. Q2 average daily active users were 79.5 million, up 21% fro...

Update - May 9 Roblox is trading down some 30% pre-market on the mobile gaming platform lowering bookings for 2024. The stock will be down to only 4x bookings estimates making Roblox a true bargain at the open below $30.  - -The company also lowered its full-year bookings forecast, as it now sees the closely watched metric coming in between $4B and $4.1B fro 15% growth, down from a prior outlook of $4.14B to $4.28B. Q1'24 Performance Metrics:   Daily Active Users (DAUs): 77.7M; UP +17% YoY Hours Engaged: 16.7B; UP +15% YoY Net Cash Provided by Operating Activities: $238.9M; UP +37% YoY Free Cash Flow: $191.1M; UP +133% YoY Average Bookings per DAU: $11.89; UP +2% YoY Original article posted on Apr. 16 Roblox Corporation is partnering with PubMatic to launch immersive video ads on its platform, targeting major brands and driving revenue growth. The U.S. video game-advertising business is expected to exceed $10 billion in 2025, presenting a significant revenue opportuni...

Update - Apr. 17, 2023 Great monthly numbers for March, but the stock got too expensive. Roblox is now down 12% on the news, as the stock was trading near 10x forward sales estimates. The stock is much more appealing in the mid-$30s.  -Roblox (NYSE:RBLX) shares fell 12% premarket on Monday after the video-game company reported user metrics for March 2023. -Average bookings per daily active user (ABPDAU) were between $3.73 and $3.85, implying a year-over-year change of -2% - +1%. The change in year-over-year March 2023 ABPDAU would have been between -1% and 3% on constant currency. -Daily active users grew were 66.2M, up 26% Y/Y but was down from 67.3M in February. Hours engaged were 4.8B, up 26% Y/Y. Update - Mar. 14, 2023 Great numbers in February with growth in the 20% range.... would be nice to see a weaker stock price.  Roblox (NYSE:RBLX) said its February revenue is estimated at between $214M and $217M, up 20% to 22% on a yearly basis. Daily active users rose 22% on a yea...

Update - Feb. 15 More good bookings numbers from $ RBLX . -Roblox (NYSE:RBLX) shares rocketed up by almost 16% in pre-market trading Wednesday as investors reacted positively to the online gaming platform company's better-than-expected fourth-quarter bookings. -Prior to the start of trading, Roblox (RBLX) said that bookings for the quarter that ended December 31 totaled $899.4M, an increase of 17% from the year-ago quarter. The company's bookings also surpassed analysts' consensus forecasts of $881.4M. -Along with its fourth-quarter results, Roblox (RBLX) said the for January, it estimates bookings will end up between $267M and $271M, which would be an increase of 19% to 21% from a year ago, and revenue will be in a range of $213M to $216M. The company added that it had 65M DAUs in January, a 19% increase from January 2022. Original  article posted on Jan. 18 Roblox Corporation reported strong December monthly metrics, with bookings growing at up to 20% in the strong holida...

Roblox reported another month of weak monthly metrics, but DAUs rose 17% YoY. The company continues to face declining bookings with May numbers down up to 24%, though slightly better than April. The stock appears washed out after rallying twice on weak corporate news. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   In no huge surprise,  Roblox  ( NYSE: RBLX ) reported  May monthly metrics  and the numbers didn't impress one bit. As gamers turn to travel and leisure events, the market has known for a while now that  numbers over the Summer will likely be weak. My  investment thesis  is turning more Bullish on the stock with the solid bounce on more weak monthly bookings totals. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - June 23 The stock was indeed washed out last we...

  Roblox reported more weak Q1'22 numbers and provided weak estimates for April. The company continues to grow overall users and hours engaged, but the business faces tough comps in the key U.S. market. The stock bounced on weak numbers in a bullish sign, but Roblox has bounced too far to chase here. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.   Learn More » After warning people a few months ago that the struggles at  Roblox  ( NYSE: RBLX ) would persist, the stock likely reached a capitulation point last week. The online gaming and metaverse company continues to face tough  comps from the huge covid pull forwards last year. My  investment thesis  is more bullish on the stock, though the large snap back rally last week should be faded. Read the full article on Seeking Alpha.  Disclosure: No position. Please read the disclaimer page for more details.  Update - ...

Roblox reported more weak monthly metrics in February, with bookings down up to 4%. The gaming company continues to face tough comps in the key US & Canada market. The stock is more reasonably priced at ~5x '23 EV/S targets, but the business will struggle into the 2H'23. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.   Learn More »   Roblox  ( NYSE: RBLX ) continues to be hit by tough comps due to the Covid pull forward of the prior couple of years. The company released 2022 numbers suggesting key domestic users are still not returning to prior peak spending and usage levels. My  investment thesis  is now more Neutral on the stock, but the weak metrics will persist for months ahead. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - March 28 Gotta love these bullish analyst calls with a ...

  Roblox got hit by new allegations surrounding child porn on the platform. The company already faces declining user growth issues with a normalization of the user base following pandemic pull-forwards. The stock just isn't cheap enough at 9x forward sales with revenue growth targeted at only 20% and these allegations possibly further hitting user numbers. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » As company after company falls due to normalization of user growth following pandemic pull-forwards in prior years,  Roblox  ( RBLX ) remains on the chopping block. The stock is already down 55% from the highs and the  new short report  from  The Bear Cave  could easily push Roblox down to new lows. My  investment thesis  is no longer ultra-Bearish on the metaverse gaming stock at $60, but Roblox is likely to trade lower before hitting bottom. Read the full article o...

  Zynga boosted Q4'21 bookings guidance setting Q3 as the trough from the reopening. The company has a solid new game launch sequence plus acquisitions to boost bookings going forward. The stock is far too cheap trading at just 10x logical '22 EBITDA targets. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » The market always has amazing dynamics causing investors to over extrapolate on short-term trends.  Zynga  ( ZNGA ) benefitted from the covid boost during 2020 and now the company is struggling to report growth due to the tough comps from last year. My  investment thesis  is very Bullish on the stock following the dip below $7 despite strong results. Read the full article on Seeking Alpha.  Disclosure: Long ZNGA. Please review the disclaimer page for more details.  Update - Jan. 10 Interesting deal, glad part of the deal is in cash. Similar to Glu Mobile not sure why Zynga ...