In today's video, I look at fundamentals, valuation metrics, and recent news for Roblox (NYSE:RBLX). Roblox has seen a lawsuit in the past month, announced that Netflix (NASDAQ:NFLX)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. 

 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.