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Upturn AI SWOT - About
Roblox Corp (RBLX)
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Upturn Advisory Summary
04/01/2025: RBLX (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 6.07% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 39.42B USD | Price to earnings Ratio - | 1Y Target Price 66.78 |
Price to earnings Ratio - | 1Y Target Price 66.78 | ||
Volume (30-day avg) 8791814 | Beta 1.49 | 52 Weeks Range 29.55 - 75.74 | Updated Date 04/1/2025 |
52 Weeks Range 29.55 - 75.74 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.44 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -25.97% | Operating Margin (TTM) -22.89% |
Management Effectiveness
Return on Assets (TTM) -9.79% | Return on Equity (TTM) -678.46% |
Valuation
Trailing PE - | Forward PE 192.31 | Enterprise Value 38292650124 | Price to Sales(TTM) 10.94 |
Enterprise Value 38292650124 | Price to Sales(TTM) 10.94 | ||
Enterprise Value to Revenue 10.63 | Enterprise Value to EBITDA -24.79 | Shares Outstanding 618996992 | Shares Floating 542428139 |
Shares Outstanding 618996992 | Shares Floating 542428139 | ||
Percent Insiders 6.45 | Percent Institutions 79.4 |
Analyst Ratings
Rating 4.03 | Target Price 55.7 | Buy 8 | Strong Buy 15 |
Buy 8 | Strong Buy 15 | ||
Hold 8 | Sell - | Strong Sell 2 | |
Strong Sell 2 |
Upturn AI SWOT
Roblox Corp
Company Overview
History and Background
Roblox Corporation was founded in 2004 and launched in 2006. It evolved from a physics simulation to a user-generated online gaming platform, experiencing significant growth in popularity, especially among younger audiences.
Core Business Areas
- Roblox Platform: This segment encompasses the core of Roblox's business: the platform itself, where users can create, share, and play games. It includes the Roblox Client, Roblox Studio (the development tool), and the Roblox Cloud.
- Robux Marketplace: Robux is the virtual currency used on the Roblox platform. This segment covers the sale of Robux, which users purchase and spend on in-game items, experiences, and avatar customizations. Developers also earn Robux which they can exchange for real currency.
- Advertising and Partnerships: Roblox generates revenue through advertising within the platform and partnerships with brands and organizations who create sponsored experiences.
Leadership and Structure
David Baszucki is the CEO and co-founder. The organizational structure includes departments focusing on engineering, product development, marketing, and partnerships.
Top Products and Market Share
Key Offerings
- Market Share (%): 25
- Roblox Platform: Roblox is the primary product, enabling users to create and play games. It boasts millions of daily active users. Competing platforms include Minecraft (MSFT), Fortnite (Epic Games), and other user-generated content platforms.
- Market Share (%): 25
- Robux: The virtual currency used within the Roblox ecosystem. It fuels the in-game economy and provides revenue for both Roblox and its developers. Direct competitors for Robux are the in-game currencies of other platforms. Revenue attributed to Robux: $2.2 billion in 2022.
Market Dynamics
Industry Overview
The gaming industry is experiencing growth, driven by mobile gaming, esports, and the rise of the metaverse. User-generated content platforms like Roblox are gaining traction.
Positioning
Roblox is positioned as a leading platform for user-generated games and experiences, targeting a younger demographic. Its competitive advantage lies in its robust development tools and large, engaged community.
Total Addressable Market (TAM)
The global gaming market is expected to reach over $300 billion by 2027. Roblox is positioned to capture a significant portion of this market by focusing on user-generated content and metaverse-like experiences.
Upturn SWOT Analysis
Strengths
- Large and engaged user base
- Strong developer community
- Robust creation tools
- First-mover advantage in the metaverse space
- High brand recognition among younger audiences
Weaknesses
- Reliance on younger demographic
- Content moderation challenges
- Dependence on developer ecosystem
- Negative press around the Robux economy
Opportunities
- Expansion into new demographics
- Partnerships with major brands
- Development of new technologies (VR/AR)
- International expansion
- Enhancing educational experiences
Threats
- Competition from other gaming platforms
- Changing user preferences
- Regulatory scrutiny regarding child safety and online privacy
- Economic downturn impacting consumer spending
- Negative press impacting brand reputation
Competitors and Market Share
Key Competitors
- MSFT
- MTCH
- ZNGA
Competitive Landscape
Roblox competes with other gaming platforms and user-generated content platforms. It has a strong position in the younger demographic but faces competition for user attention and developer talent.
Major Acquisitions
Guilded
- Year: 2021
- Acquisition Price (USD millions):
- Strategic Rationale: Guilded is a platform for gaming communities, and the acquisition was intended to enhance Roblox's communication and community features.
Growth Trajectory and Initiatives
Historical Growth: Roblox has experienced rapid growth in user base and revenue over the past few years, driven by its popular platform.
Future Projections: Analysts project continued revenue growth, driven by increased user engagement, expansion into new markets, and metaverse initiatives.
Recent Initiatives: Recent initiatives include investments in metaverse technologies, partnerships with brands, and expansion into new languages.
Summary
Roblox has a strong presence in the gaming industry with its user-generated platform. It is rapidly growing, but it faces challenges, including content moderation and sustaining profitability. Its strong community and metaverse initiatives are working well. Roblox needs to manage costs and adapt to evolving consumer preferences.
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Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Market Research Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Roblox Corp
Exchange NYSE | Headquaters San Mateo, CA, United States | ||
IPO Launch date 2021-03-10 | Founder, President, CEO & Chairman of the Board Mr. David Baszucki | ||
Sector Communication Services | Industry Electronic Gaming & Multimedia | Full time employees 2474 | Website https://corp.roblox.com |
Full time employees 2474 | Website https://corp.roblox.com | ||
Roblox Corporation operates an immersive platform for connection and communication in the United States and internationally. It offers Roblox Client, an application that allows users to explore 3D experience; Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences and other content; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
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