RBLX is a great buy, please change my mind

So this top part is pulled from copilot and I haven't gone through each item to verify.

  • Daily Active Users (DAUs): As of September 2024, Roblox had 66.2 million daily active users, up 26% year-over-year.
  • Hours Engaged: Users spent 4.8 billion hours engaged on the platform, also up 26% year-over-year.
  • Revenue: Estimated revenue for March 2023 was between $212 million and $223 million, representing a 15% to 21% increase year-over-year.
  • Bookings: Estimated bookings for March 2023 were between $247 million and $255 million, up 23% to 27% year-over-year.
  • Average Bookings per Daily Active User (ABPDAU): This metric was between $3.73 and $3.85, showing a year-over-year change of -2% to +1%.
  • Market Capitalization: As of January 2025, Roblox's market capitalization stands at approximately $40.57 billion.
  • Profitability Metrics: The company has an operating margin of -34.91% and a profit margin of -30.90%.
  • Free Cash Flow: For 2024, Roblox's free cash flow is projected to reach between $621 million and $636 million.

this ^ is what Copilot pulled up. Now I am going to explain why I am buying it, and I would like people to tell me why I am wrong because how I see RBLX it can only go up for now.

So ill start this with I'm in my late 30s and a gamer for all of my life. Enjoyed growing up in a golden age of Video game innovation and development witnessing and enjoying the transition of video games from 2d quarter eater to the modern 3D multifaceted worlds we have today. I do not play RBLX but I have installed it and messed around with it for about a weekend a while back and I've watched footage on YouTube about some of the new hype games as they come and go.

One of the greatest experiences as a gamer I had in my life was the peek days of SC1 and WC3 arcades (Starcraft and Warcraft 3). In the peak of the arcade's life, you could play custom maps/games created by other players. They took two great RTS games (probably the greatest ever) and turned them into endless entertainment.

Within the confines of the game engine people created amazing pieces of content. WWII games, full RPGs with leveling/story/cutscene, fan tributes like DBZ maps, books turn into games and metric crap ton more. WC3 even spawned an entirely new game genera, a very successful one at that MOBAs. League of Legends and DOTA2 started from the DOTA all-stars map that I played back in the day.

This was peek gaming in a lot of ways for me and a lot of people that were lucky enough to experience it. Roblox recreates this and lets the creators get a cut of the traffic they send their way, RBLX taking a large cut as I understand it.

So, when looking a RBLX I see this arcade, YouTube and Minecraft. The content is made to mostly by the players themselves. The structure with the profit sharing for the creators not unlike YouTube. It provides a new game on demand at almost no cost to the user.

They are wining an entire generation over. This past Christmas I had at least 3 kids at the family get together playing different games in RBLX. One of the kids wrangled the other two and got them started on their preferred game. A bunch of the little monsters wanted Robucs or whatever it is for Christmas so they can buy their pets and skins for whatever game type they were into.

The point I'm getting at is kids are playing it, it offers near endless content, the kids will extract cash from their parents/relatives for this content. They are not even in China yet. I believe it has to do with the regulatory climate over there, but it's not ruled out last I checked. The growth is amazing they hold cash they don't even have to make the content just provide the tools. Their Market cap is hugely undervalued for what it is on the fast track to becoming.

In the next 10 years its MC should 10X at least from wear it is unless some horrible catastrophic event ends it. I don't see a long-term downside people like to say they will age out but here I am still spending money on games closing in on 40.

Let me know what you guys think wile I keep buying it. (sorry about spelling and grammar misses)