How to Buy Roblox Stock
Roblox Corp
Roblox is a electronic gaming & multimedium company located in California, United States, which is part of the Communication Services sector, and is traded under the ticker RBLX on the NYSE exchange.
Roblox stock last closed at $35.53, up 1.6% from the previous day, and has decreased 5.43% in one year. It has underperformed other stocks in the Electronic Gaming & Multimedia industry by 0.06 percentage points. Roblox stock is currently +42.81% from its 52-week low of $24.88, and -24.72% from its 52-week high of $47.20.
As of Apr 25, 2024, there are 631.64M shares of RBLX outstanding. The market capitalization of RBLX is $22.44B. In the last 24 hours, 7.25M RBLX shares were traded.
How to Buy Roblox Stock
Not sure how to invest in Roblox stock? Here's how.
- Figure out where to buy Roblox stock: You need to decide on a stock brokerage, but don't worry - we've sifted through dozens of online brokerages and apps to help you decide where to buy Roblox stock.
- Create a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've identified.
- Put funds into your brokerage account: Pick your method of payment and add your information.
- Evaluate Roblox stock: The Roblox ticker symbol is RBLX. Is Roblox stock a good investment? Should you buy shares of RBLX? How do RBLX's underlying business fundamentals look? Do top analysts think Roblox is a good buy? Why has RBLX's stock price moved recently? (Hint: Our stock market research tools can help you understand if RBLX is a good stock to buy).
- Place your RBLX buy order: Decide if you will purchase RBLX shares at the current market price or use a limit order to buy RBLX stock at a specific price.
- Get notifications regarding your RBLX investment: Create a watchlist to monitor your new investment in Roblox shares.
Step 1: Figure out where to buy Roblox stock
You will need an online brokerage account to access the NYSE market and buy RBLX stock.
Our preferred brokerage: eToro
Based on our analysis, eToro is the best place to buy stocks. eToro gives you:
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- Social investing: eToro offers a community with more than 20 million users around the world. Talk to, learn from, and copy the crypto trades of top investors.
- Security: eToro is a regulated and licensed brokerage platform.
- Buy other financial assets: Such as ETFs and cryptos.
Get $10 towards your share purchase by creating an account with eToro now.
Open eToro AccountStep 2: Create a brokerage account
Now that you've chosen your brokerage, you'll need to fill out some personal info so you are able to invest in RBLX today.
How to Create a New Investment Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Enter your personal data to open a new trading account.
- Submit your data by hitting the "Create Account" button. Get started with eToro today
Step 3: Put funds into your brokerage account
Now that you've opened your account on a good stock buying app, you need to deposit funds:
Check out the tutorial below for more details transferring funds into your new brokerage account.
Step 4: Evaluate Roblox stock
After you have decided on the best place to buy Roblox stock, it's important to evaluate their stock before you invest, so you truly understand the risk as well as the opportunity.
Roblox shares quick numbers
RBLX Zen Score
WallStreetZen was designed to help everyday investors perform more in-depth fundamental analysis.
You can see all of the due diligence checks on RBLX's stock page.
Is RBLX stock properly valued?
You can use many financial metrics, analyses, models, and charts to gauge RBLX's fair value.
Using relative valuations metrics:
- RBLX could be overvalued based on its P/B ratio of 294.17x, relative to Electronic Gaming & Multimedia industry P/B ratio of 4.01x
You can access additional valuation research on RBLX's stock here.
RBLX Financial Health Overview
Positive Financial Indicators:
- Total RBLX debt is lower than 5 years ago, relative to shareholder equity.
- There are more short-term assets than short-term liabilities on the RBLX balance sheet.
- RBLX's operating cash flow of $458.18M allows it to safely service it's debt of $1.65B.
- There are more short-term assets than long-term liabilities on the RBLX balance sheet.
Negative Financial Indicators:
- RBLX earnings of -$1.11B is not sufficient to cover its interest payments.
- RBLX has a relatively high debt to equity ratio of 79.95.
- RBLX profit margin has gone up by 0 percentage points in the past year, but the company is still unprofitable.
Do analysts think it's a good time to buy RBLX stock
Out of 15 sell side analysts who monitor RBLX, the consensus analyst rating on RBLX is a Buy
Please keep in mind that analyst forecasts are not stock recommendations, nor are they financial advice.
Latest RBLX Analyst Recommendations
Eric Handler, a top 13% analyst from Roth MKM maintains RBLX with a strong buy rating and raises their RBLX price target from $50.00 to $55.00, on Feb 8, 2024.
Roth MKM's Eric Handler raised their price target on Roblox (NYSE: RBLX) by 10% from $50 to $55 on 2024/02/08. The analyst maintained their Strong Buy rating on the stock.
Handler increased their price target post an assessment of Roblox's Q4 and FY 2023 earnings report, released on 2024/02/07, because the quarter's results were "strong."
Looking ahead, the analyst noted that "the company is benefiting from an aging audience and an expanding and maturing international user base, both of which are leveraging the platform's more compelling content and features along with broader device connectivity."
Earnings Report
Roblox reported:
For Q4 2023:
- Loss per share of $0.52, which beat the LSEG (formerly Refinitiv) consensus estimate of $0.55 but missed, by 8.3%, Q4 2022's $(0.48).
- Revenue of 749.94M, which beat Q4 2022's $579M by 29.5%.
- Bookings of $1.13B, which beat the LSEG (formerly Refinitiv) consensus estimate of $1.08B and were up 25% Y/Y.
- Adjusted EBITDA of $259.6M, up 42% Y/Y
For FY 2023:
- Loss per share of $1.87, down 20.6% from FY 2022's $(1.55).
- Revenue of 2.799B, up 25.8% from FY 2022's $2.225B.
- Bookings of $3.521B, up 23% Y/Y.
- Adjusted EBITDA of $431.7M, up 21% Y/Y.
Management guided:
For Q1 2024:
- Revenue of $755M to $780M.
- Bookings of $910M to $940M.
- Net loss of $347M to $342.
- Adjusted EBITDA of $(55M) to $(50M).
For FY 2024:
- Revenue of $3.3B to $3.4B.
- Bookings of $4.14B to $4.28B.
- Net loss of $(14B) to $(1.365B).
- Adjusted EBITDA of $(150M) to $(115M).
Founder & CEO David Baszucki commented: “We finished 2023 with another strong quarter of growth as we continue to drive innovation and new experiences across the Roblox platform.
"We enter 2024 with even more conviction of being able to achieve our long-term goal of attracting over 1B daily active users with optimism and civility.
"We continue to benefit from the strong network effects in content, social connection, and communication, as well as our investments in immersive experiences, advertising, and AI.
CFO Michael Guthrie added: “We ended the year with our strongest rate of quarterly bookings growth in two years and delivered our first quarter of $1B in bookings.
"We are scaling our operations efficiently, thereby improving our margins and cash flow, and we expect those trends to continue in 2024.”
Nick McKay, a top 10% analyst from Wedbush maintains RBLX with a buy rating and raises their RBLX price target from $53.00 to $56.00, on Feb 8, 2024.
Ross Sandler, a top 8% analyst from Barclays upgrades RBLX to a hold rating and raises their RBLX price target from $26.00 to $46.00, on Feb 8, 2024.
Bernie McTernan, a bottom 1% analyst from Needham maintains RBLX with a buy rating and raises their RBLX price target from $51.00 to $55.00, on Feb 8, 2024.
Kevin Kumar, a top 31% analyst from Goldman Sachs maintains RBLX with a strong sell rating and raises their RBLX price target from $26.00 to $35.00, on Jan 19, 2024.
You can dig deeper into what analysts are forecasting on the Roblox stock forecast page.
RBLX Momentum
RBLX Earnings
Last year, RBLX revenue was $2.80B. During the past five year, RBLX's revenue has grown by 53.83% per year. This was faster than the Electronic Gaming & Multimedia industry average of 19.83%.
Dive into RBLX's earnings and revenue performance here.
Latest Insiders Trades at RBLX
Over the past year, executives and large shareholders at RBLX have sold more shares than they have bought.
Mark Reinstra, Gen. Counsel Secretary of RBLX, was the latest RBLX insider to sell. They sold $146,760.00 worth of RBLX shares on Apr 17, 2024.
Research more about who owns RBLX stock here.
Can I rely on RBLX as an income stream?
No, Roblox doesn't provide an income stream by paying out dividends.
Get opinions from other traders
One of the major reasons eToro is our highest-rated brokerage is because of its social trading community.
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Step 5: Place your RBLX buy order
You have two primary order types:
- Market order: A market order is an order to buy or sell a security at the best price on the market.
Market orders are mostly the best for newer investors. - Limit order: A limit order lets you buy or sell a security at a specific price (or better).
If you want to be certain you're buying or selling at an exact dollar amount limit, place a limit order.
Press the Open Trade button and your broker will execute the order.
If you want additional help buying stocks on eToro, click the helpful video below:
Step 6: Get notifications regarding your RBLX investment
Now that you own some RBLX stock, you'll want to keep up with your new shares.
Make a watchlist to get notified of important updates regarding your RBLX stock.
RBLX Feed
How to Buy Stock in Roblox
To summarize, here are the 6 steps to buy stock in Roblox:
- Figure out where to buy Roblox stock
- Create a brokerage account
- Put funds into your brokerage account
- Evaluate Roblox stock
- Place your RBLX buy order
- Get notifications regarding your RBLX investment
If you need a brokerage, eToro is our recommended option.
Get Started with eToro TodayIf you would like to track your investment in Roblox, add RBLX to your watchlist by clicking the button below.
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