If you are wondering whether Roblox at around US$63 is a fair price or an opportunity, the key question is what you are really paying for in terms of future cash flows and growth expectations.
The stock is currently around US$63.07 after a 16.2% decline over the last week, a 22.2% decline over the past month, and a 22.1% decline year to date, although the 3 year return sits at 68.1%.
Recent attention on Roblox has focused on its position in online gaming and virtual experiences, along with how its platform and user trends might justify its current market value. This mix of excitement about the business model and concern about price has kept the stock in the spotlight and helps explain the recent swings in returns.
