Roblox stock could double in three years due to strong long-term potential and growth strategies.

From Yahoo Finance: 2025-03-25 07:22:00

Roblox (NYSE: RBLX) stock has dropped nearly 20% from its peak due to weak guidance for the first quarter and declining growth rates. However, with 85.3 million daily active users and 19% year-over-year growth, long-term potential is strong. Revenue growth of over 19% and $830 million in free cash flow are expected for 2025.

The company aims to scale to 1 billion users, 12 times its current count, with potential in various sectors beyond gaming. Roblox’s recent expansion to Sony’s PlayStation platform and future metaverse growth opportunities suggest a positive outlook. Doubling in three years is a bold prediction but achievable with continued user growth and monetization progress.

Roblox’s platform growth includes a goal of 10% global gaming content share and AI integration for creators. The NFL and NBA presence on Roblox showcase expansion beyond its under-13 demographic. As the metaverse market grows exponentially, Roblox’s potential for further development is significant. The company’s recent launch on Sony’s PlayStation platform and future metaverse advancements could drive robust growth.

For investors considering Roblox, The Motley Fool Stock Advisor analysts identified 10 top stocks for potential high returns, excluding Roblox. The average return of 839% outperforms the S&P 500. With a $62 stock price, doubling to $144 in three years implies a 26% annual gain. While ambitious, Roblox’s growth trajectory suggests it is plausible.

Read more: Roblox Could Surge by More Than 100% in the Next 3 Years