3 Things About Roblox That Smart Investors Know
Roblox (NYSE: RBLX) stock has returned to Wall Street's good graces in 2023 as investors turn their attention back toward growth. The digital entertainment platform is again reporting strong sales gains. That success has been tempered by reports of continued net losses. Smart investors should probably look beyond those headline results for clearer signs about Roblox's long-term potential.
With that goal in mind, here are three key factors about this business that smart investors know. These issues will matter most to the long-term bullish thesis for this company and its stock.
At this stage in Roblox's growth story, engagement is a major priority. Roblox is first and foremost an online game platform and game creation system that allows users to program games and play games created by other users. It generates most of its revenue from the in-game currency these users exchange. Increased engagement is important for most entertainment platforms, but especially in this case where the company needs to attract both users and content creators so that it can create a virtuous cycle between the two groups.
Source Fool.com
