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Roblox Is Burning Cash: What Should a Long-Term Investor Do?

TheMotleyFool

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Roblox Is Burning Cash: What Should a Long-Term Investor Do?: https://g.foolcdn.com/editorial/images/695562/son-and-mother-on-phone.jpg

Roblox's (NYSE: RBLX) growth hangover is in full swing. The digital entertainment platform that captured millions of new users through 2020 and 2021 just announced a second straight quarter of declining bookings. Other key financial metrics, including average revenue per user and free cash flow, were negative as well.

The news hit Wall Street with a thud, with the stock down immediately following the second-quarter announcement even after falling over 50% year to date. Let's take a closer look at whether the investing thesis might be broken on this formerly high-flying business.

Roblox is still growing its platform. The level of daily active users expanded by 21% even compared to a nearly 100% spike a year ago.

Source Fool.com

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