Roblox Corporation (RBLX): A Bull Case Theory

We came across a bullish thesis on Roblox Corporation on r/Valueinvesting by Ananyxgupta. In this article, we will summarize the bulls’ thesis on RBLX. Roblox Corporation's share was trading at $66.42 as of February 6th.

Roblox Corporation operates an immersive platform for connection and communication in the United States and internationally. RBLX presents a compelling investment opportunity for those looking at long-term growth in the gaming and metaverse space. The company has experienced pressure on its share price, creating an attractive entry point, but its fundamentals remain strong.

Engagement and retention metrics are robust, and the user base continues to grow steadily. While RBLX is currently operating at a loss, the company has significant potential to improve margins through operating leverage as monetization accelerates across its platform. This dynamic positions the stock for substantial upside over the next three to five years.

Market sentiment has been weighed down by macroeconomic headwinds, high interest rates, and broader underperformance in growth stocks, alongside concerns about timelines for profitability and scalability. However, these risks—volatility, regulatory uncertainty, and competition—appear to be overemphasized relative to the company’s revenue growth potential and margin expansion opportunities. Valuation models incorporating continued user growth, monetization gains, and scalable operations suggest that Roblox is currently undervalued relative to its long-term earnings potential.

With an enterprise value of approximately $60 billion, Roblox looks well-positioned to capture additional market share in gaming while potentially expanding into adjacent metaverse markets. The company’s trajectory implies the potential for several billion dollars in annual profit within the next five to ten years, making the current stock price an attractive entry point. For investors focused on a multi-year horizon, gradually building a position in RBLX could deliver significant upside as growth, profitability, and market sentiment converge to rerate the stock.

Previously, we covered a bullish thesis on Roblox Corporation (RBLX) by SuperJoost in May 2025, which highlighted strong Q1 revenue growth, record free cash flow, rising creator income, and expanding monetization levers, reinforcing the platform’s position as a full-fledged digital economy. RBLX’s stock price has depreciated by approximately 6.14% since our coverage. Ananyxgupta shares a similar bullish view but emphasizes long-term margin expansion through operating leverage and the company’s potential to scale in the gaming and metaverse markets.

Roblox Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held RBLX at the end of the third quarter which was 75 in the previous quarter. While we acknowledge the risk and potential of RBLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RBLX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.