Last year was a strong one for Roblox (NYSE: RBLX) as its stock delivered a 35% return to investors. The gaming company bounced back strongly after a brief slowdown in 2022 and 2023 and is set to ...

And unlike Roblox, the latter is a hugely profitable company. If Roblox fails to meet its high expectations, the stock valuation could plummet, reflecting the new reality.

Additionally, Roblox's stock is priced at a premium valuation, giving investors no margin of safety. In short, I don't think Roblox stock is a buy now.

Like YouTube, Roblox started as an online stage for young creators. As the company grows toward 100 million active daily users, contributors are making big money selling games.

Roblox's early 2022 revenue was up 83%, and its current first-quarter figure of $655 million is up 69% compared to two years earlier. Losses continued ...