May. 17 at 1:03 PM
$RBLX I firmly believe this is like investing in
$NFLX in 2015 when it was also a
$30B market cap. I can easily see this stock 10x over the next decade and become a
$300B company.
$FB.X has spent over
$80B for the metaverse and Roblox is already built the metaverse. The user generated content (like
$GOOG youtube) makes it easy to stay relevant. The increase in creator revenue sharing for more adult games (who have more money to spend then kids) will payoff in my opinion, although it might be a slight drag on current earnings. My bear case is
$38 (-12%) due to high share based compensation and safety issues being a drag. My base case is
$54 (+26%) due to this being a social platform that every kid is currently highly addicted to and is already easily monetized (every kid wants robux to spend in Roblox). My bull case is
$67 (+57%) that simply assumes it continues to grow as it has already been doing and 10x over the next decade. This is the asymmetric upside I like when picking stocks.
