Unsurprisingly, Roblox's platform was a major hit during the COVID-19 pandemic, with so many people at home and filling their time in various ways.

As investors evaluate Roblox, it's critical to understand the risks beneath the surface. Here are two key red flags that deserve your attention before you buy the stock. Image source: Getty Images.

2 Green Flags and 1 Red Flag for Roblox Stock November 14, 2023 — 08:24 am EST Written by Demitri Kalogeropoulos for The Motley Fool -> Investors are warming up to Roblox (NYSE: RBLX) stock again.

Roblox spends heavily on infrastructure to support real-time multiplayer capabilities across more than 100 million users, alongside constant investments in trust and safety.

Roblox's red flag to watch The issue with Roblox's stock right now is its high valuation while still being unprofitable.

Unsurprisingly, Roblox's platform was a major hit during the COVID-19 pandemic, with so many people at home and filling their time in various ways.

Roblox estimates its full-year bookings to fall between $5.87 billion and $5.97 billion, which would be a 34% to 37% YOY growth. Roblox's red flag to watch ...