45bn makes it more expensive than Electronic Arts and Ubisoft combined.
In no way does the fundamentals make sense for the market.
Roblox 1.5bn revenue, EA 5.5bn/yr, Ubisoft 1.7bn/yr.
Take-Two Interactive Software, Inc with a market cap of 18.984B, has the highest grossing game of all time [Grand Theft Auto V], some of the greatest IP, many partnerships with sports [NBA]. 3bn revenue/yr.
I explained, Roblox is now a public company, to my brother, and he could buy it with his allowance, and he could be rich if the company gets more players... He plays roblox all the time. He said people will stop playing it in a couple years probably, and it's too hard to setup [actually requires coding] where as something like minecraft you can just play. A consistent game where you can code stuff, or you can just play.
If you're a gamer and you've seen roblox, it's lesser of a game than Garry's mod.
Minecraft sold for 2.5bn to Microsoft. Roblox being 45bn makes no sense. It's a single SKU business. At current prices, Roblox is a meme stock for boomers who know nothing about the industry, they just see their grand kids play the game and blind people who think the share price matters... I've seen a penny stock [literally 1 cent] with a market cap of a bn, the company does literally nothing, people just see "oh it's a penny it will go up eventually]. Not looking at the Market Cap. That company just had a 7m share split, the split was 50x 70x 20000x.
Yeah but that penny stock is not getting 36 million daily long term (over 120 minutes) visits per day! My son doesn't give a crap about EA, but all of his friends chat daily through RBLX. EA is for much older guys that should be working now. RBLX is the next generation of gamers and they could care less about NBAx, football or whatever. It's just the way things are going, adapt or die.