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Update - Jan. 30, 2026 Roblox plunged 13% to multi-month lows due to the Project Genie fears. Google having an interactive virtual world is far different from having a platform for user interaction The sell off is far over done.  Video game stocks are plummeting in Friday's afternoon trading session after tech giant Google ( GOOG ) ( GOOGL ) announced "Project Genie," an experimental research prototype that allows users to create virtual worlds and interact with them. Names like Unity Software ( U )  -21.6% , AppLovin ( APP )  -13.2% , Roblox ( RBLX )  -12.3% , and Take-Two ( TTWO )  -9%   are getting hit the hardest. "Consumers may be able to vibe code virtual worlds to explore, but there has to be a platform for online engagement, and there will still be a market for higher-quality experiences," the Wells Fargo added. Ultimately, Project Genius has these major restrictions. Not to mention, the prototype requires a Google AI Ultra subscription costing...

Update - Dec. 16, 2025 J.P. Morgan cut the price target to $100, down from $145, due to questions on engagement and user headwinds. The stock is getting  cheap at close to 7x '26 sales while the market is over thinking the engagement  headwinds after nearly  100% growth in Q3.  The research firm said they are positive on RBLX’s longer-term positioning in the video game  ecosystem but think shares could take a breather in 2026 from engagement headwinds, slowing bookings growth, and margin compression. JPM said engagement trends have started to moderate, with most viral experiences past their peaks. They expect an engagement headwind from the facial age estimation rollout in January and estimate the Russia ban could impact up to 10M DAUs. Update - Oct. 30, 2025  Roblox reported massive Q3'25 growth with bookings up 70% to $1.9 billion. The stock is down roughly 10% with the market lost focusing on GAAP revenue and net loss metrics, which don't fully incorpora...

  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...

Update - Jan. 17 Huge month from Roblox  with bookings in Dec. up nearly 20%. The stock was a buy in the $20s, but Roblox gets fully priced in the upper $30s.  -Roblox shares surged almost 14% Tuesday as investors responded positively to the gaming platform company's strong December results. -Prior to the start of trading, Roblox said that in December it had 61.5M daily average users [DAU], up 18% from the same month in 2021, while engaged hours of users climbed 21% from a year ago, to 4.7B hours. -Roblox said its revenue continued to show the effect of a strengthening U.S. dollar against currencies such as the British pound and the euro. In addition to its overall revenue being impacted by currency levels, Roblox (RBLX) said its average bookings were between $6.99 and $7.14 per daily user, which, depending on final results either slipped by 1% or rose as much as 1% from December 2021. -Total bookings for the month were strong, as Roblox said bookings came in between $430...

  Roblox has rallied too far off the lows having doubled in only months. The company still hasn't turned around the monthly metrics with the last bookings level down nearly 10%. The stock is far too expensive back trading at near 10x forward sales targets. After a big rally since the mid-June low, Roblox ( NYSE: RBLX ) has clearly run too far for the current market realities. The stock needs a pause to refresh. My  investment thesis  remains bullish over the long  term, but the current stock view is much more Neutral with the gaming platform still struggling to top tough comps while the stock recently doubled from the lows. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Nov. 9 Roblox falling 21% today is the exact pause SFC was looking for.  The chart looks ugly here, so one should wait for to make sure the prior lows hold.  Update - Oct. 17  As predic...