Trading Near Its 52-Week High, Can Roblox Stock Still Soar Higher?
One stock that has been surging in recent months is Roblox (NYSE: RBLX). The company's gaming platform is popular with young kids, and sales have been taking off in recent years. It has also been expanding its business so that its content is more appealing to a wider age group, as many young kids often move on from Roblox and onto consoles or more mature gaming options.
The business's long-run growth opportunities are attractive, but the company remains unprofitable, which can be a roadblock preventing the stock from soaring much higher than where it is right now. Near its 52-week high, is there still room for Roblox stock to rally from here, or should investors consider cashing out and looking at other growth stocks to buy instead?
Anytime an online service appeals to young kids, safety is going to be a key issue. If it's not safe, advertisers may not want their brands to be associated with the platform, which can have a significant impact on a company's growth potential.
Source Fool.com
