Roblox's growth offers potential investment returns

Roblox's stock, currently trading around $70, has shown signs of recovery with a 31% year-over-year bookings increase in the first quarter of 2025. This growth challenges previous concerns about the platform's long-term viability. The gaming platform's daily active users rose to 97.8 million, with a 4% increase in average bookings per daily active user. Roblox's expansion includes attracting older users and expanding internationally, boosting its bookings growth. While analysts predict a 20% compound annual growth rate through 2027, the company remains unprofitable and faces challenges in balancing costs with growth. A $10,000 investment might yield over $60,000 in a decade.