Better Buy: Zoom vs. Roblox Stock

Both Zoom Video Communications (NASDAQ: ZM) and Roblox (NYSE: RBLX) stock fell from Wall Street's good graces since their pandemic-related surges. There are different reasons for these weak performances in 2023, though. Zoom remains profitable but is expanding sales slowly, while Roblox is growing quickly but generating losses.

The good news is that both businesses have attractive growth avenues to target over the next few years. Their stock valuations have come down significantly since the start of 2023 as well. These factors could lay the groundwork for market-thumping returns ahead for shareholders, but which is the better buy? Let's dive right in.

Growth-focused investors will find more to like about Roblox's operating trends. The digital entertainment specialist posted a 22% increase in bookings, a measure of sales gains, in the most recent quarter. That surge marked a modest deceleration compared to the prior quarter, but Roblox is still expected to grow at a nearly 20% rate in 2023.

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Source Fool.com