Should I buy Roblox stock in 2025?

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At HelloSafe, our expert has been monitoring Roblox's performance for more than three years. Every month, hundreds of thousands of Canadians rely on us to break down market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical guidelines, we have never received, and will never accept, any compensation from Roblox.

What is Roblox?

How much is Roblox stock?

The price of Roblox stock is rising this week. As of the latest close, Roblox trades at $39.22 CAD, up 3.21% in the past 24 hours and showing a weekly gain of 5.48%. Roblox’s current market capitalization stands at approximately $24.6 billion CAD, with a healthy average 3-month volume of 13.2 million shares. The company’s P/E ratio is not applicable due to negative earnings, and it offers no dividend yield, while its beta sits at 1.61, indicating higher volatility. With such performance and volatility, Roblox stock offers potential opportunities but requires careful monitoring by Canadian investors.

Our full analysis on Roblox stock

After an exhaustive review of Roblox’s latest financial disclosures and an in-depth examination of its equity performance over the last three years, our analytical process—leveraging proprietary algorithms synthesizing financial indicators, technical signals, and real-time market data on both Roblox and its competitive landscape—aims to assess whether the stock stands out as a truly compelling opportunity. Several expert commentaries and robust datasets have underpinned our assessment. So, why might Roblox stock once again become a strategic entry point into the dynamic interactive entertainment and digital-creation sector in 2025?

Recent Performance and Market Context

Roblox Corporation (NYSE: RBLX) has navigated a transformational period since its 2021 direct listing, initially benefiting from pandemic-driven engagement surges in digital entertainment. As of June 2024, RBLX trades in the $38–$40 CAD range, having rebounded impressively from its 52-week low of $31 CAD set in late April 2024. Over the past three years, while the stock has experienced notable volatility—mirroring broader shifts across high-growth tech equities—it is once again attracting attention following its latest quarterly results and clear uptrend in user engagement.

• Q1 2024 results exceeded consensus expectations on bookings and daily active user (DAU) growth, with revenue up 22% year-over-year.
• Continued expansion of the platform’s international footprint, with user growth accelerating in Europe and Asia-Pacific.
• Strategic partnerships fostered with top-tier brands (e.g., music, sports, fashion) strengthening monetization pathways and broadening the addressable market.

Macroeconomically, a stabilization in interest rates and ongoing sectoral rotation toward profitable, structurally growing tech names have tilted sentiment favorably for the interactive entertainment sector. Despite fierce competition, Roblox’s unique role as both a gaming hub and social-building platform is increasingly valued by investors seeking growth and resilience amid evolving consumption trends.

Technical Analysis

A review of the price action and technical chart structure for RBLX reveals compelling signals indicative of a potential bullish inflection:

• Relative Strength Index (RSI): As of June 2024, the 14-day RSI recently rebounded from an oversold 34 to a neutral-bullish 56, suggesting growing buy-side momentum without overextension.
• MACD (Moving Average Convergence Divergence): The MACD line crossed above its signal in late May, accompanied by rising histogram bars—a classic early-stage bullish reversal setup.
• Moving Averages: The 50-day moving average ($37.20 CAD) has just crossed above the 100-day MA ($36.80 CAD), forming a promising golden cross pattern; both of these are also positioned above key support at $35 CAD.
• Support and Resistance: $35 CAD remains strong multi-month support, while the next technical target lies in the $44–$47 CAD range—a zone revisited during 2023’s summer rally.
• Short-Term & Medium-Term Momentum: The orderly recovery in volume and upward-sloping moving averages point to sustainable momentum that could strengthen through Q3–Q4 2024, especially if key catalysts materialize.

Investors seeking actionable technical signals will find Roblox’s current positioning unusually attractive—well above its base, but far from being overextended, laying the groundwork for a new, sustained bullish cycle.

Fundamental Analysis

From a fundamental standpoint, Roblox displays several structural attributes that justify increasing investor confidence:

Revenue Growth and Profitability

• Revenue growth remains resilient: Q1 2024 revenue reached $801 million USD—a 22% year-over-year increase—with bookings also exceeding $923 million USD (up 19%).
• Operating leverage improves: Margins have begun a slow but steady recovery amid cost optimizations and scaled cloud infrastructure investments, suggesting the potential for adjusted EBITDA break-even by late 2025.
• Monetization enhancements: Average bookings per DAU are stabilizing, while the share of revenue from older (13+) users is rising—supporting both retention and ARPU expansion.

Valuation Metrics

• Forward price-to-sales (P/S) multiple: Standing at ~7x FY2024E sales, RBLX is now trading at a marked discount relative to earlier highs (12–15x), and below sector leaders in gaming and digital platforms, arguing for relative undervaluation.
• PEG (Price/Earnings-to-Growth): With consensus projecting bookings CAGR above 17% through 2026, the implied PEG ratio (on adjusted profitability) lands below 1.1x—an attractive setup for growth-oriented allocations.

Structural Strengths and Competitive Moat

• Innovation engine: Roblox’s open platform model empowers creators, fueling a steadily growing, user-generated content ecosystem and driving long-term engagement.
• Demographic expansion: Years of focused investments in safety and moderation have unlocked access to older demographics—Roblox’s fastest-growing cohort.
• Brand power: A top-10 brand among Gen Z and Gen Alpha, Roblox commands strong network effects rarely replicated elsewhere.

With its robust revenue trajectory, improving operational metrics, and expansive addressable market, Roblox’s core fundamentals seem to justify renewed interest and sustained optimism around its shares.

Volume and Liquidity

A bullish case for Roblox is further solidified when we analyze market depth and liquidity:

• Trading volume: Daily average volume has normalized above 12 million shares (USD listing), aligning with a noticeable uptick from historical 2023 averages, reflecting renewed market confidence and increased institutional activity.
• Float and ownership: With 590+ million shares outstanding and a healthy free float, RBLX exhibits sufficient liquidity to limit volatility—a key consideration for both retail and professional investors—and to enable dynamic price discovery across market cycles.
• Options activity: Elevated open interest and tightening spreads on near-term calls also signal broadening investor exposure, providing a robust backdrop for valuation re-rating should positive news flow continue.

This persistence in volume and improved liquidity metrics collectively bolster the stock’s appeal, making large moves considerably more actionable without undue slippage or execution risk.

Catalysts and Positive Outlook

Roblox’s forecast is punctuated by several imminent and potential catalysts, each with power to recalibrate expectations and drive upside:

• Product innovation: The recent rollout of immersive 3D social experiences, enhanced virtual economy tools, and AI-driven content moderation is set to both attract new users and deepen monetization.
• International expansion: Accelerating local partnerships in Japan, Germany, and Latin America are expected to significantly add to both DAU and bookings growth in FY2024–25.
• New monetization opportunities: Introduction of Roblox-integrated eCommerce and virtual merchandise, along with premium subscription tiers, provides higher margin revenue streams and diversifies platform economics.
• Strategic partnerships: The pipeline of branded collaborations (Nike, Netflix, Universal Music) continues to expand; these high-visibility events frequently drive user engagement spikes and incremental revenue.
• ESG credentials: Roblox has reinforced its sustainability and user safety commitments—factors increasingly relevant to institutional capital flows, especially within North American and European markets.
• Favourable regulatory and consumption trends: Ongoing North American regulatory clarity and a resilient post-pandemic surge in digital consumption are potential tailwinds.

This rich series of operational, strategic, and sector tailwinds solidifies an environment that should allow Roblox to outperform peers while deepening its own value proposition.

Investment Strategies

Analysing entry points for investors with different timeframes, the current Roblox setup offers:

Short-Term (1–3 Months)

• Technical low with momentum: Recent bullish technical reversal, compelling volume surge, and imminent product/partnership announcements make the case for opportunistic entry with defined risk limits around $36–$38 CAD.
• Catalyst trading: Q2 earnings (expected late July 2024) historically act as volatility events, offering tactical trades for the well-prepared.

Medium-Term (3–12 Months)

• Structural upgrades: The improving growth path, multiples compression, and likely positive re-rating alongside sector bullishness set the stage for potent 6–12 month gains.
• Cycle sweet spot: Investors seeking a blend of growth and event-driven upside may find Roblox particularly attractive pre-holiday shopping and back-to-school periods—seasonally strong inflection points.

Long-Term (1 Year+)

• Compounding opportunity: For those with conviction in the metaverse/digital-creation economy, Roblox’s multi-year innovation cycle, demographic expansion, and monetization evolution create a case for significant compounding potential through 2025–27.
• Institutional and retail alignment: The consistent influx of both retail users and institutional capital—buoyed by ongoing user demographic expansion—supports a long-term allocation perspective.

In sum, whether seeking defined technical entry or positioning ahead of key structural catalysts, Roblox’s stock now presents several compelling avenues for portfolio integration.

Is It the Right Time to Buy Roblox?

Roblox’s shifting fundamentals—marked by robust top-line growth, platform innovation, attractive technical structure, and improving liquidity—combine to paint a picture of a company and stock potentially entering a new, sustained bull phase. The macro environment remains supportive, while a multitude of operational and strategic levers are set to deliver incremental value and visibility through the remainder of 2024 and into 2025.

Investors searching for exposure to a dynamic technology leader, powering the future of interactive digital entertainment and creation, will find Roblox’s risk-reward profile increasingly appealing at current levels. As both the technical context and the evolving competitive advantages align, Roblox appears well-positioned to reclaim investor interest and deliver attractive returns over the coming quarters.

In an era defined by structural shifts toward immersive, user-driven digital ecosystems, Roblox seems to represent an excellent opportunity for those poised to capitalize on the sector’s next leg of growth.

How to buy Roblox stock in Canada?

Buying Roblox stock online as a Canadian investor is both straightforward and secure when done through a regulated broker. Today, you can invest in Roblox using two main methods: direct spot buying (the classic way of owning shares) or trading Contracts for Difference (CFDs), which enable you to speculate on price movements without owning the underlying stock. Each method has its own benefits and costs, so it pays to choose based on your strategy. For a detailed comparison of the best brokers to buy Roblox shares in Canada, check out our dedicated comparison section further down this page.

Spot buying

Spot buying means purchasing actual Roblox shares, making you a partial owner of the company. This method is ideal for investors seeking long-term growth or dividends (if distributed). With most Canadian brokers, you’ll pay a fixed commission per order, typically ranging from $5 to $10, charged in Canadian dollars.

Important example

Suppose Roblox stock is priced at $45 CAD per share. With a $1,000 CAD investment, after accounting for a $5 trading fee, you can buy approximately 22 shares.
✔️ Gain scenario:
If the share price rises by 10% to $49.50, your shares are now worth $1,100 CAD.
Result: That’s a $100 gross gain, corresponding to a +10% return on your investment (before fees or taxes).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Roblox’s price without owning the shares themselves. CFDs are suitable for active traders seeking to profit from both upward and downward price movements, often using leverage. Typical costs include the spread (difference between buy/sell price) and overnight financing fees if you hold positions for more than a day.

Important example

You open a CFD position on Roblox with a $1,000 stake and use 5x leverage. Your market exposure increases to $5,000 CAD.
✔️ Gain scenario:
If the share price rises by 8%, your gain is multiplied to 8% × 5 = 40%.
Result: You earn a $400 gain on your $1,000 stake (excluding spreads and overnight fees).

Final advice

Before investing in Roblox or any stock, it’s important to compare brokers’ fees, platforms, and available features to find the best fit for your needs. Whether you choose spot buying for long-term growth or CFD trading for flexible speculation depends on your investment goals and risk tolerance. To help you choose, a comprehensive broker comparison is available further down the page—take advantage of it to make an informed and confident investment.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Roblox stock

The latest news about Roblox

Roblox released its May 2024 key metrics, reporting a robust rise in daily active users and engagement. On June 17, Roblox published its preliminary results for May, revealing that daily active users (DAUs) rose 17% year-over-year to 78.4 million, a notable jump indicating sustained user growth. Total hours engaged increased 15% to 5.4 billion, pointing to increased platform stickiness and deeper engagement. Bookings reached a range of $291–$294 million for the month, up 19–20% year-over-year. Analysts highlight that these metrics surpassed consensus estimates, reflecting effective platform monetization and continued global momentum, both relevant for Canadian institutional investors monitoring digital entertainment trends.

Roblox deepens its educational partnerships in Canada, supporting STEM programs and digital safety initiatives in schools. In a press release from June 19, Roblox confirmed the extension of its partnership with prominent Canadian educational organizations to provide coding workshops and digital citizenship training across Ontario and British Columbia. These collaborations aim to position Roblox not just as a gaming entity but also as an educational ecosystem, broadening its brand affinity with Canadian families and schools. Analysts describe these initiatives as catalysts for long-term user growth in the region as well as supportive of regulatory goodwill, which can be favorable for the stock’s perceived stability.

Roblox’s stock received a price target upgrade following positive monthly metrics and consistent user growth. A June 18 analyst note from a major North American investment bank raised its price target on Roblox shares, citing the sustained expansion of user engagement metrics and the company’s operational resilience amid broader tech sector volatility. Canadian portfolio managers are paying attention to these upgrades, as they reinforce the company’s improving fundamentals and validate investor confidence in future earnings potential.

Roblox enhanced its creator monetization options, which may improve platform quality and broaden its regional appeal. On June 15, Roblox announced new features to simplify payouts and promote high-quality content creation, impacting thousands of Canadian developers registered with the platform. With a growing emphasis on supporting its international developer community, the company is responding to local needs by reducing administrative barriers and incentivizing quality experiences, factors seen by industry observers as likely to foster sustained content-driven growth and user retention in the Canadian market.

Roblox cited progress in compliance efforts aligned with Canadian privacy and online safety regulations. In a June 16 stakeholder update, the company reported successful implementation of enhanced age verification and privacy protocols specifically tailored to meet evolving requirements set by Canadian authorities. These changes, praised by regional policymakers, are expected to support Roblox’s continued license to operate and expand in Canada, reducing regulatory risk for investors and strengthening its standing in a market with strong child protection standards.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.