Is It Too Late to Buy Roblox Stock?
Shares of Roblox (NYSE: RBLX) have climbed 40% since it went public through a direct listing in March. The company has a growing platform of 46 million daily active users that connect with each other in virtual 3D worlds (the metaverse) and engage in various activities such as games, educational experiences, and virtual concerts.
Its valuation looks expensive with the shares currently trading for 30 times sales. That is much higher than top social media and video game stocks that sell for 10 times sales or less, but Roblox is growing very quickly. Revenue was up 127% year over year in the second quarter, and that was on top of a 68% increase in the year-ago period.
However, growth in daily active users slowed to 8% in July as the company laps the acceleration that occurred during the second half of 2020. So how much upside does the stock offer long-term investors?
Source Fool.com
