Up Over 40% This Year, Is Roblox Stock Still a Buy?
Roblox (NYSE: RBLX) is an online gaming platform that lets users play games in various virtual 3D worlds. Along with having countless games and experiences to enjoy on the platform, users can also create their own games and experiences that others can play and enjoy. The large community aspect of Roblox has made it a huge hit among children and adult video game enthusiasts.
Roblox went public in March 2021 at $62.50 per share, and by November 2021 its stock price was over $130. It's since dropped over 70%, but it's up 45% in 2023 -- solidifying a roller-coaster two years for investors. Given Roblox's stock price gains this year, investors are rightfully wondering if it's too late to hop aboard.
In the first quarter of 2023, Roblox brought in $655 million in revenue, up 22% year over year. Although the company has yet to hit profitability, that's to be expected at this stage of growth. In Q1, Roblox spent over $275 million on research and development, around $98 million more than it spent in the year-ago quarter.
Source Fool.com
