Its valuation has plummeted as growth stocks have fallen out of favor, and pandemic-related tailwinds that led to surging engagement have waned. ![]() However, the business is now facing headwinds and challenging performance comparisons. ![]() Roblox also has a huge social-interaction component, which has helped it grow quickly and generate high levels of engagement. And the focus on user-generated content sets up the potential for a content ecosystem that can continue evolving over the long term. Rather than being a video game company in the traditional sense, Roblox is actually a platform that houses thousands of unique games and experiences.Ĭreators can make their own games and content for other players to enjoy - and earn money depending on how much engagement is generated. Keith Noonan: Roblox's service is already incredibly popular, and I think there's a lot to like about the company's core business model.
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