![]() An increase in the number of users provides incentives for more developers to create new content on the RBLX platform, and this in turn helps to make the platform more appealing for new users. In a nutshell, Roblox makes money by monetizing the content on its platform with the sale of its virtual currency known as Robux. ![]() In the "corporate overview" section of the company's investor relations website, RBLX describes itself as "a human co-experience platform" and "one of the top online entertainment platforms for audiences under the age of 18" which is supported by "developers who produce their own immersive multiplayer experiences." I am referring to what Roblox does and why it is attractive as an investment candidate, when I use the term "basics". It is important to have a good understanding of the basics for RBLX stock, before I touch on Roblox's recent developments. Moreover, RBLX's current valuations are still rich, and a further valuation derating is likely. ![]() RBLX hasn't set out a clear path to achieve profitability, and its bookings growth might not have troughed yet looking at its May 2022 metrics. My prediction is that Roblox's share price will continue to drop going forward based on the company's outlook. In the current article, I offer an update of my views on Roblox's outlook considering RBLX's continued stock price decline which has occurred in tandem with the sell-off in technology names. I highlighted in my earlier update for RBLX published on Mathat a meaningful stock price recovery for Roblox to above $70 is unlikely. My investment rating for Roblox Corporation ( NYSE: RBLX) is a Sell. Ian Tuttle/Getty Images Entertainment Elevator Pitch
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