![]() In terms of dollars and cents, Crum believes that Roblox will report that it ended fiscal 2021 with $2.7 billion in bookings. And given that older players can generally be expected to possess more disposable income than kids, that should be a good long-term trend for Roblox. ![]() In a curious twist for a company whose games have historically been most popular with young users, Crum thinks that user growth among older Roblox players - age 13 and up - will actually outpace overall user growth, rising 48% year over year. In that report, Crum predicts Roblox will announce 16% year over year growth in bookings, a 30% increase in hours of "engagement" by Roblox users on the platform, and a 32% increase in daily active users. Roblox stock is expected to report Q4 earnings sometime towards the end of February. (To watch Crum's track record, click here)īut what makes Crum so optimistic about that? Still, at a new estimated value of $110 per share, Crum's new price target still implies that Roblox stock could rise 67% this year. Such bookings will be counted as revenue by the company once customers have spent the Robux to acquire virtual items or make other purchases on the Roblox platform.Īcknowledging that Roblox's stock value has been damaged by investors' sudden aversion to growth stocks, Crum tweaked his price target on the gaming company's stock lower by 18%. In Roblox's case, by the way, "bookings" refers to customers' purchases of "Robux" virtual currency. Shares of the gaming platform now cost just 9.3 times next year's "bookings," when - in Crum's estimation - a valuation of 18x 2023 bookings would be more appropriate. ![]() Despite a "longer-term fundamental outlook is generally unchanged" since the IPO, Roblox's share price has now changed quite a bit. In a recent research note, Stifel analyst Drew Crum made the argument that investors' "rotation out of tech/growth/high valuation names" has created an attractive entry point into Roblox shares.
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