Roblox Has A Long Road Ahead

Summary

• The unrealistic expectations from the pandemic gaming market and Facebook’s metaverse pivot look to be behind us.
• There are several indicators that some of the pandemic growth is sticky. Interest remains high from users and developers.
• It looks like their ballooning R&D and Capex costs are moderating as they wrap up a slew of 2021-2023 projects.
• Roblox is a company with a very long time horizon. They are patient and deliberate.

Ian Tuttle

Roblox and Expectations

Expectations for Roblox (NYSE:RBLX) have been out of whack for some time now:

• The pandemic gaming market gave unrealistic expectations about growth in 2020-2021.
• Facebook (META) gave unrealistic expectations about how close we are to the

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RBLX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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