Core Insights - The COVID-19 pandemic created contrasting outcomes for Carnival and Roblox, with Carnival facing severe challenges while Roblox thrived during the lockdowns [1][2] Carnival's Performance - Carnival's total revenue dropped from $20.8 billion in fiscal 2019 to $1.9 billion in fiscal 2021 due to the pandemic, resulting in net losses of $10.2 billion in fiscal 2020 and $9.5 billion in fiscal 2021 [4] - To maintain solvency, Carnival idled ships, cut spending, and increased its year-end debt from $11.5 billion in fiscal 2019 to $33.2 billion in fiscal 2021 [5] - By fiscal 2023, Carnival's revenue rebounded to $21.6 billion, exceeding pre-pandemic levels, and is projected to grow to $25 billion in fiscal 2024, with a net profit of $1.9 billion [8] - Analysts forecast Carnival's revenue and earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 5% and 24% respectively from fiscal 2024 to fiscal 2027 [9] Roblox's Performance - Roblox experienced significant growth during the pandemic, with bookings surging 45% in 2021 and daily active users (DAUs) increasing by 40% [13] - However, as pandemic restrictions eased, Roblox's growth metrics slowed, leading to a drop in stock price to a low of $21.65 in May 2022 [14] - In 2023, Roblox's bookings increased by 23%, and DAUs rose from 58.8 million in fiscal 2022 to 85.3 million in fiscal 2024, indicating a recovery [15] - Despite this growth, Roblox is expected to remain unprofitable due to high infrastructure costs and nearly $1 billion in debt [16] Investment Outlook - While Roblox has shown strong growth, its capital-intensive model raises sustainability concerns, whereas Carnival, despite slower growth, is profitable and presents a more attractive investment opportunity in the current market [17]

Core Insights - Roblox has regained attention in 2025 due to its strong growth and renewed investor confidence [1][2] Growth Momentum - Roblox reported $1.4 billion in revenue for the most recent quarter, marking a 48% year-over-year increase, with bookings surging by 70% [3] - Daily active users (DAU) increased by 70% year-over-year to 151.5 million, and engagement hours reached 39.6 billion, a 91% rise from the previous year [4] - The user base is expanding into new age groups and regions, with users aged 13 and older growing by 89% year-over-year [5] Monetization Strategy - Roblox is evolving its monetization strategy beyond in-game currency, Robux, by implementing regional pricing strategies for Game Passes and Marketplace items [7][8] - A partnership with Google Ad Manager aims to enhance ad monetization, with 18,000 creators using traffic-driving ads in Q3, a 27% increase from Q2 [9] Investor Sentiment - The stock has more than doubled in 2025, trading at 19 times sales, but remains unprofitable due to high infrastructure and safety costs [12] - The contrasting views among investors highlight strong growth potential versus concerns over valuation and profitability [13] Future Outlook - The company is in a transition phase, aiming to align engagement, monetization, and operating leverage to achieve profitability [15][16]

Core Insights - Roblox Corporation (NYSE:RBLX) is highlighted as a strong investment opportunity by billionaire D.E. Shaw, following impressive third-quarter results with bookings of $1.92 billion, a 70% increase year-over-year, surpassing expectations [1] Financial Performance - The company reported a net loss of $0.37 per share, which was better than analyst forecasts [2] - Revenue increased by 48% year-over-year to $1.36 billion, driven by viral content and strategic investments in its creator ecosystem [2] - Daily active users reached 151.5 million, with total hours spent on the platform rising by 91% [2] - Operating cash flow surged by 121%, while free cash flow increased by 103% [2] Business Model - Roblox operates a user-generated online gaming platform that allows users to create, share, and play 3D experiences [3] - The platform is free-to-play and generates revenue through a cut of sales from its virtual currency, Robux, and advertising [3]

Core Insights - Roblox reported Q3 2025 revenue growth of 48% year-over-year to $1.4 billion, with bookings for virtual currency Robux increasing by 51% to $1.9 billion [1][3] - Daily Active Users (DAU) reached 151.5 million, a 70% increase year-over-year, with total engagement hours at 39.6 billion, up 91% [1][3] - The growth in DAU and engagement time indicates a rising trend in average user participation [1] Regional Performance - DAU in the Asia-Pacific (APAC) region grew by 108%, the highest globally, while Europe and North America saw increases of 56% and 32%, respectively [3] - For users aged 13 and above, DAU increased by 89%, surpassing 100 million, while users under 13 grew by 44% [3] - Engagement time in APAC rose by 127%, with Europe and North America increasing by 82% and 47%, respectively [3] User Engagement and Content - The surge in user numbers and engagement is attributed to the emergence of popular content since Q2 2025, including titles like "Grow a Garden" and "99 nights in the forest" [6] - The average bookings per daily active user (ABPDAU) remained stable at $12.68, with regional variations showing a 13% increase in the US/Canada and 22% in Europe [3][6] Financial Performance - Despite revenue growth, Roblox reported a net loss of $250 million in Q3 2025, with creator payout expenses rising by 85% and infrastructure costs increasing by 61% [6] - Roblox announced a 7% increase in the creator payout percentage effective September 2025 [6]

Core Insights - The article discusses the best stocks to invest in according to billionaire D.E. Shaw, highlighting the hedge fund's successful navigation through market uncertainties and its impressive returns in 2024 [1][2][4]. Investment Strategy - D.E. Shaw employs a strategy of deep buying during market pullbacks, which has contributed to the recovery of equity markets and record highs despite challenges like US tariffs and trade wars [1][2]. - The hedge fund's investment portfolio reflects a balance between diversification and concentrated bets on transformative companies, indicating a strong confidence in technology and data to enhance returns [4]. Fund Performance - The Oculus fund, D.E. Shaw's second-largest fund, achieved a 4.6% gain in July, doubling its year-to-date return to 9.6%, while the flagship multi-strategy Composite fund gained 1.5% in July, bringing its year-to-date returns to 9.3% [3]. - The multi-strategy composite fund generated an 18% return in 2024, with the Oculus fund soaring 36% [4]. Stock Highlights - AerCap Holdings N.V. (NYSE:AER) reported a robust third-quarter net income of $1.216 billion and adjusted earnings of $865 million, raising its full-year adjusted EPS guidance to $13.70 [9][10]. - Roblox Corporation (NYSE:RBLX) posted third-quarter bookings of $1.92 billion, a 70% increase year-over-year, with revenue growing 48% to $1.36 billion [14][15]. Methodology - The article outlines the methodology for selecting the best stocks, which involved scanning D.E. Shaw's portfolio and analyzing stock performance from the end of Q2 to October 28, along with broader hedge fund sentiment [7][8].

Core Viewpoint - Roblox shares fell 10% due to expectations of increased capital expenditures that may pressure margins [1] Financial Performance - Roblox's third-quarter revenue increased by 48% year-over-year to $1.36 billion, while bookings surged by 70% to $1.92 billion, surpassing LSEG estimates of $1.65 billion [3] - The company reported a loss of 37 cents per share, which was better than analyst expectations of a loss of 49 cents per share [3] Capital Expenditures and Margins - The company anticipates capital expenditures of $468 million, an increase of $158 million from previous guidance [1] - Operating margin may decline slightly year-over-year due to higher Developer Exchange (DevEx) rates and investments in infrastructure and safety [2]

Q3 2025 Supplemental Materials October 30, 2025 Forward-Looking Statements This presentation and the live webcast and Q&A session which will be held at 530 a.m. Pacific Time/830 a.m. Eastern Time on Thursday, October 30, 2025 contain "forward-looking statementsˮ within the meaning of the "safe harborˮ provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion users with optimism and civility, our vision to reach 10 ...

Core Viewpoint - Roblox is under investigation in Florida for allegedly failing to protect children from sexual predators, with the state's attorney general accusing the platform of being a "breeding ground" for such activities [1][2][4]. Group 1: Allegations and Investigations - Florida Attorney General James Uthmeier claims that Roblox has not adequately safeguarded children from sexual predators and lacks sufficient age verification measures [1][3]. - The civil probe initiated in April revealed that the platform has been ineffective in protecting minors from exploitation [3][5]. - Over 20 lawsuits have been filed against Roblox this year, accusing the platform of enabling sexual exploitation [9]. Group 2: User Demographics and Safety Concerns - Approximately 40 million players, more than one-third of Roblox's user base, are under the age of 13 [4]. - The platform, while aimed at children, also allows adult users to interact with minors, raising significant safety concerns [5][8]. - Safety experts have noted that Roblox's age verification measures, such as a recently launched face-scanning feature, can be easily bypassed [6]. Group 3: Legal Actions and Consequences - Louisiana's Attorney General Liz Murrill has also sued Roblox, labeling it as "the perfect place for pedophiles" [8][11]. - A wrongful death lawsuit was filed by the mother of a 15-year-old boy, alleging that Roblox's lack of protective measures led to her son's exploitation and subsequent suicide [8]. - Uthmeier reported that over 1,000 child predators have been arrested in Florida this year, with many cases linked back to Roblox [10].

Core Insights - Roblox has a strong user engagement with over 100 million daily active users, but struggles with profitability and high losses while maintaining a premium valuation [1][2] Group 1: Revenue Diversification - Roblox primarily generates revenue from in-game currency sales, making it reliant on player spending, thus advertising could provide a significant opportunity for diversification and profitability [3][4] - The introduction of immersive ad formats and partnerships with Google Ad Manager aims to facilitate brand campaigns and enhance revenue streams for developers [4] - A modest increase of $10 in annual ad revenue per user could yield over $1 billion in additional high-margin revenue, indicating a substantial growth opportunity [5][6] Group 2: User Demographics - The platform's popularity among younger users presents challenges, as they tend to spend less and pose regulatory hurdles [7][8] - The over-13 age group accounted for 71.4 million of the 111.8 million daily active users, a significant increase from 36.8 million two years prior, highlighting the importance of engaging older users for higher spending and advertising appeal [8][9] - Providing more sophisticated experiences could enhance user lifetime value and prevent churn as users mature [9] Group 3: International Growth - Roblox's global expansion is notable, but monetization in international markets lags behind the U.S., where average bookings per daily active user were $40.7 compared to $4.95 in Asia-Pacific and $11.49 in Europe [10][12] - To improve international monetization, Roblox needs to localize content, enhance payment systems, and collaborate with regional brands [11][12] - Increasing international spending, even modestly, could unlock significant growth potential given that only 20.6 million of the 111.8 million daily active users are from the U.S. and Canada [12] Group 4: Investment Implications - The company has demonstrated the ability to attract a large audience, but converting engagement into earnings is crucial for profitability [13] - Investors should focus on the company's ability to execute on building a credible advertising business, retaining and monetizing older users, and increasing international spending [15]

Core Insights - Roblox is experiencing concerns regarding its in-game currency sales, leading to a significant decline in its stock price [1] - An analyst's pessimistic update highlights slowing bookings growth, which is critical for the company's financial health [2][3] Company Performance - Daily active users (DAUs) continue to grow robustly, indicating strong engagement among players [3] - However, the growth rate of bookings from in-game currency, Robux, has significantly decreased, particularly in the U.S. market [3][4] Financial Metrics - U.S. bookings growth is estimated to be in the low-30% range year-over-year for September, down from mid-to-high-40% in August and over 50% in July [4] - This decline in growth rates raises concerns among investors, as maintaining high growth is crucial for the company's valuation [5]