Roblox Stock Is Still on Track for the Long Term
Roblox (NYSE: RBLX) recently released its February metrics report, and although it showed that bookings are down, one number that stood out was its daily active user growth of 28 percent year over year. In this episode of "The Gaming Show" on Motley Fool Live, recorded on March 21, Fool.com contributors Jose Najarro and Jon Quast discuss what's ahead for the global gaming platform.
Jose Najarro: So seeing that 28% year-over-year growth is, in my opinion, the biggest takeaway here. Unfortunately, we are seeing bookings down. Total bookings down 2 to 4%, definitely something to worry about. But we are seeing a lot in the gaming market where they're being hit, as people are going back to school, back to the office, not having enough game time. The estimated average bookings per daily active user is going down. I do believe they are increasing their international exposure, and usually international regions tend to have lower monetization rates. But the great thing about this is Roblox, to some extent, is a company that, if they add more users, it doesn't really increase the cost for Roblox. Maybe right now, it might not be the best time to monetize Roblox. To those players, it might just be the time of, hey, let's just grab you, let's grab your friends, get everybody into this platform. Now once we continue to see these daily active users, that's when we can monetize you even better later on. I am a Roblox investor. I am happy with the daily active users. The other things, I'm not overshadowing it, but I don't think it's hurting my long-term thesis on the company.
Source Fool.com
