Roblox is one of Wall Street’s darlings. Also, it is an user-generated game platform with 50m DAUs.
Roblox has the opportunity to become an aggregator:
1) Pop culture – every person gets an avatar which can be customised;
2) Immersive experience – more than 70% of the users use the phone and most of them are willing to expand to VR/AR with proper headsets (hint! Oculus);
3) Own currency – called Robux, which creators and developers can earn and exchange it to money;
4) Roblox App store – where you can find a game for your preferences.
Roblox game characters
Of course, there are challenges ahead: back to school, people leaving the platform when reaching a specific age etc, but the company is doing pretty well at mitigating these risks.
The only threat that I see with the current inflation is that people will stop buying goods in the game and just playing for free. We shall see…