1 Reason to Be Very, Very Excited About Roblox Stock Right Now

Source The Motley Fool

Key Points

  • Roblox already has an immense, devoted, and growing user base.

  • Right now, nearly 40% of them are still under the age of 13.

  • Yet, many of these users could be devotees for a very long time.

  • 10 stocks we like better than Roblox ›

The video game industry is a hulking beast these days, but Roblox (NYSE: RBLX) has excellent potential to be a real monster. Many market players have been justifiably impressed by the company's double-digit revenue and booking improvements lately, However, I think they're missing a broader dynamic that alone will produce powerful growth for a very long time to come.

Kid stuff

For me, the great potential for Roblox as a company lies not in the ever-rising popularity of its platform, nor the appeal of such friendly and likable individual games within the system such as Grow a Garden. I'm more wowed by the age of the players.

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Young people playing a video game.

Image source: Getty Images.

Roblox is a system pitched to youth, with games geared to the tender ages for which it's done a fine job collecting users. That's an understatement -- in its most recently reported quarter, its daily active users (DAUs) rose a mighty 41% year over year to nearly 112 million. Of that total, almost 40% of those souls are under the age of 13. My own two offspring are Roblox-heads, and sit in that demographic.

The video game industry is now decades old, and with that history, we can see that folks who played when very young often continue to do so well into adulthood. This is why very grownup titles like the Call of Duty combat series from Microsoft's Activision Blizzard -- which passed 500 million unit sales in 2024, according to its maker -- are so immensely popular.

Growing with the customer

It's obvious that Roblox is expertly capturing the video game zeitgeist with users who have, no exaggeration, decades of video game play in front of them. Not only that, they're ultra-familiar and comfortable with its platform and are already sticky and devoted players of its games.

All that Roblox the company has to do is grow along with these users, rolling out increasingly sophisticated games as they progress into and through adulthood. Today's kids will be tomorrow's wage-earning grownups; imagine the levels of in-game spending that'll generate.

Should you invest $1,000 in Roblox right now?

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Roblox. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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