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Investors hate Roblox’ new direction – but a reversal may be impossible | Opinion
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Roblox is still a very big company by industry standards, but investors seem far less assured that it deserves its status as a growth stock.
It’s unsurprising that the stock market has dramatically reconsidered Roblox’ valuation as a result.
Shareholders may expect Roblox leadership to take the hint and return to policies that justify a growth valuation.
It changed recommendation systems to push players towards games with better long-term retention instead of higher revenue-per-hour; friction.
That may mollify investors in the short term; in the longer term, Roblox is simply likely to end up valued as a games company, rather than a tech company.