Roblox Investors Could Be Playing a Dangerous Game
The entertainment platform hinted at another robust quarter, but competition looms in the metaverse.
Sustainable growth?
Photographer: Ian Tuttle/Getty Images
A few weeks of improving trends is giving hope to Roblox Corp.’s investors that the worst of the gaming platform’s post-pandemic slowdown is now behind it. They might want to hit pause on that notion.
Roblox — known by parents everywhere as the cultural phenomenon whose virtual playgrounds have captivated their children — posted predictably solid results late Monday (before following up with its earnings call for analysts early Tuesday). The company’s bookings — the industry’s primary measure of sales – climbed 28% from a year earlier to $637.8 million for the quarter ended in September, and daily active users for period rose 31% to 47.3 million.