RBLX

 RBLX stock has a price target of $53 going forward

By Mark R. Hake, CFA Mar 14, 2022, 2:10 pm EDT

KEY POINTS

• Roblox’s long-term growth relies on its ability to gain older users.
• It’s also ramping up its international expansion.
• A growing number of brands are joining its metaverse platform.

Roblox Corporation (NYSE:RBLX) posted stellar earnings on Feb. 15 for its fourth quarter and 2021 at large. As a result, RBLX stock could be worth significantly more than Friday’s numbers based on its powerful free cash flow (FCF).

Source: Katya Rekina/ Shutterstock.com

That is good news for holders of the stock, as it has had a rough time lately. Roblox is down significantly from its peak price of $134.72 on Nov. 19.

As of Friday, March 11, RBLX stock had fallen to $39.24, representing a drop of almost 71% from the peak. Moreover, from the end of last year, the stock is off 62% from $103.16, as of Dec. 31, 2021.

The Roblox stock price correction has gone too far. This is especially the case since the company is profitable. It also produces significant amounts of FCF which is key to its higher valuation.