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This Could Be a Huge Catalyst for Roblox

By Jose Najarro - Jun 24, 2021 at 8:00AM

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The recent news of Netflix using Roblox's platform can bring new developers and content to Roblox.

In today's video, I look at fundamentals, valuation metrics, and recent news for Roblox (RBLX -2.19%). Roblox has seen a lawsuit in the past month, announced that Netflix (NFLX 1.67%)has created an experience using its platform, and reported its critical metrics for May. Below I share a few highlights of the video. 

  1. Roblox reported that daily active users saw 28% year-over-year growth for May 2021 but did experience a slowdown of 1% compared to April 2021. This slowdown in monthly users triggered a bit of a sell-off, which I believe will be forgotten once investors hear the guidance for the summer months.
  2. Netflix has recently released a Stranger Things experience within the Roblox metaverse. I would not be surprised if more media production houses start creating experiences on Roblox in the upcoming quarters. 
  3. I look at valuation metrics and share what I believe is one of the most significant risks. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of June 23, 2021. The video was published on June 23, 2021. 

 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Roblox Corporation Stock Quote
Roblox Corporation
RBLX
$45.09 (-2.19%) $-1.01
Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$245.17 (1.67%) $4.02

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