Roblox, an immersive online platform that allows users to create avatars, explore virtual worlds, and play games, has become a popular hub for millions of gamers of all ages. Users can create content and games on the platform, with big-name brands like the NFL and Gucci also participating. The platform also serves as a digital social hub where users can connect with friends online and attend virtual events. Users can monetize the content they create on Roblox, with some earning significant amounts of money from selling digital items.
As of the second quarter of 2024, Roblox has 79.5 million average daily active users, attracting players of many ages. In fiscal year 2023, Roblox counted 68.4 million daily active users, with a majority of them younger than 25. The platform has been ranked as the second-most popular PC game by monthly active users, behind Minecraft, and the fifth-most popular game by monthly average users on PlayStation and Xbox in 2023. The global games market is expected to generate around $187.7 billion in revenue in 2024, with PC gaming revenue accounting for a little over 20%.
While average quarterly playtime for gamers has decreased by 26% between the first quarter of 2021 and the last quarter of 2023, Roblox players spent 17.4 billion hours on the platform during its second quarter of 2024, a 24% increase compared to the same period last year. David Baszucki, founder and CEO of Roblox, emphasized the platform’s unique content ecosystem and its ability to attract users of all ages from across the globe. The company continues to invest in its core platform to support its creator community and reach more people.
Roblox began trading on the New York Stock Exchange just three years ago under the ticker symbol RBLX. CNBC calculated how much a $1,000 investment in Roblox would be worth now if you had invested in the company one year ago or when it went public. Financial experts advise against chasing hot stocks and recommend a more hands-off approach, such as investing in low-cost index funds that aim to replicate the performance of a market index like the S&P 500. The S&P 500 has seen an increase of close to 28% compared to 12 months ago and a little over 44% since Roblox went public in March 2021.
As the gaming industry continues to evolve and grow, platforms like Roblox offer unique opportunities for users to create, share, and monetize their content while also connecting with a global community of gamers. With millions of users actively participating in the platform, Roblox’s influence and impact on the gaming market are significant. By investing in a diversified portfolio of assets like low-cost index funds, investors can potentially achieve long-term growth and minimize the risks associated with individual stock investments.
