Read This Before Buying Roblox Stock

Core Insights - Roblox is a leading video game platform with a significant user base and growth potential [1][2] - The platform has expanded its demographic, with only 17% of daily active users in the U.S. and Canada and 33% under 13 years old [2] - The introduction of AI has significantly improved user engagement and experience on the platform [4][5] User Engagement and Growth - Roblox's AI search algorithm has enhanced the discovery of games, resulting in seven experiences with over 10 million daily active users in Q3, five of which were created in the past year [5] - The user base grew 70% year over year to 151 million daily active users, with total time spent on the platform reaching nearly 40 billion hours, up 91% [6] - Management believes the platform can support 1 billion users, indicating a potential for nearly seven times the current business size [6] Stock Performance and Valuation - Roblox's stock price has decreased by 35% from recent highs, with a price-to-sales (P/S) ratio that had more than doubled in 2025, peaking above 20 [7] - Despite the current P/S ratio of 14 being considered expensive, it is justified given the company's rapid growth [9] - If Roblox achieves its goal of 1 billion users, the current valuation may appear attractive in retrospect [9]