Roblox - AI Stock Analysis

Analysis generated September 23, 2025

Roblox Corporation (RBLX) is a leading global online platform that brings people together through play. Established in 2004, the platform enables users to create, share, and interact in immersive 3D worlds created by developers and creators. The company thrives on its user-generated content model and offers a range of tools to developers for constructing engaging experiences. With a diverse user base that spans various age groups, Roblox has become a cornerstone of digital social interaction and gaming, particularly among younger audiences.

Fundamental Analysis

Roblox reported revenue of $1.08 billion for the last quarter. This marks a 4.39% increase compared to the previous quarter, highlighting positive short-term growth. Year-over-year, the revenue increase is even more pronounced at 20.94%, suggesting robust long-term growth as well.

However, there are areas for concern. The net income for the last quarter was $278 million, reflecting a 29.44% decline from the previous quarter and a 35.21% decrease from the same quarter last year. Such a significant drop merits attention as it indicates financial distress.

The company's EBITDA for the last quarter was $322 million, a staggering 112.50% decrease from the previous quarter and a 123.76% decrease from the same quarter last year. These numbers suggest operational inefficiencies that need to be addressed.

Technical Analysis

The current stock price of Roblox stands at $132.22. This represents a 12.51% increase compared to a month ago, indicating a positive short-term trend. Over a longer timeframe, the stock has appreciated by an impressive 180.66% compared to a year ago, highlighting robust long-term growth.

However, the short-term trend appears bearish. The current Simple Moving Average (SMA10) is 135.19, slightly lower than the previous SMA10 of 135.30. Additionally, the Relative Strength Index (RSI) is 7.8, indicating a potentially oversold condition that could suggest a buying opportunity.

Alternative Data Analysis

Job postings and employee sentiment reflect a company poised for growth. Roblox has 183 open positions, a 28% increase in the last couple of months, signaling expansion. However, the business outlook among employees remains neutral, which may indicate some internal uncertainties.

Customer acquisition metrics are very promising. Roblox’s webpage has an estimated 748 million visitors, up by 13% in the last couple of months. Additionally, an estimated 500,000 users are downloading their mobile apps daily, a 30% increase, indicating growing popularity and user engagement.

Customer engagement on social media platforms is another positive indicator. Roblox has 9.6 million followers on Instagram, an 18% increase in the last couple of months. However, Twitter followers remain stagnant at 8.2 million. According to AltIndex's AI score, which aggregates fundamental, technical, and alternative data, Roblox has an AI score of 65, signaling a buy recommendation.

Conclusion

Roblox presents a mixed but generally promising investment opportunity. On the fundamental side, the company shows strong revenue growth but faces challenges with declining net income and EBITDA. The technical indicators reveal short-term volatility but a strong long-term upward trend. Alternative data shows robust customer acquisition and engagement, as well as expansion in hiring, suggesting operational growth. Given these mixed signals, the overall recommendation leans towards a cautious buy, especially considering the AI score of 65, which suggests a favorable outlook.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.