Roblox reports 17% growth in daily active users for May 2022

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Roblox Intrinsic Value – Roblox ($NYSE:RBLX) has reported a 17% year-over-year growth in daily active users for May 2022. According to the company, daily active users were 50.4 million in the month, while hours engaged climbed 10% year-over-year to 3.6 billion. This growth is significant because it marks a return to pre-pandemic user levels for Roblox. It’s likely that this trend will continue in the coming months, as more people get vaccinated and return to their usual activities. This could have a positive impact on Roblox’s market and earnings in the long term.

Market Reaction

So far, news coverage of ROBLOX’s public debut on the stock market has been mixed. On Wednesday, the stock opened at $25.8 and closed at $28.9, up 10.6% from its previous closing price of $26.1.

VI Analysis – Roblox Intrinsic Value

The company’s fundamentals reflect its long term potential. The VI app makes it easy to see how ROBLOX is doing in terms of key indicators such as revenue and profit margins. Roblox Intrinsic Value is around $85.8, as calculated by the VI Line. This means that the stock is currently undervalued by 66%. Now might be a good time to buy ROBLOX stock, as it is trading at a significant discount to its fair value.

Summary

This marks the second consecutive month of double-digit growth for the company. The news comes as a mixed blessing for investors, as the stock prices have been highly volatile in recent months. Following the news, the stock price jumped 10.6%. The company has been on a tear lately, reporting strong user growth and financial results. However, there are some concerns that the company is over-reliant on a small number of large games and that it may be difficult to sustain the current growth trajectory. Nevertheless, the company’s strong performance in recent months has made it one of the hottest stocks on the market. Looking ahead, the company is expected to continue to grow at a rapid pace. However, given the recent volatility in the stock price, investors should tread carefully.