Why buy RBLX now

joshuachin
2021-06-16

Yes, the results are out. Yesterday after market close, $Roblox Corporation(RBLX)$reported an estimated month-on-month decline in bookings. Even as Roblox said that May metrics are usually lower than the preceding month, the stock slid around 7% after market close and is now down around 8% in pre-market.

But they also reported a 28% YoY increase in daily active users. And this is the metric we should be focusing on - a 28% YoY increase in daily active users from 2020, a year where most of the world was in lockdown, schools were shut and children spent hours on end gaming as they had more free time. Even as schools in some parts of the world have reopened and covid restrictions loosened, the number of active users this May is almost 30% higher than last May.

That's impressive. Really impressive.

Add Roblox's relatively high retention rates and its popularity amongst the youth and there you have it: a company with a good business model that is set to thrive. It only gets better from here.

Disclaimer: Not financial advice

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