Investors are taking a keen interest in Roblox Corp., makers of the Roblox online game platform and game creation system, once again. After a steady downfall earlier in the year, the Roblox stock (RBLX) has surged in recent weeks and is now up 35% over the last month.
RBLX peaked at $134.72 late in 2021 before tumbling down to $23.19 in May. But the stock then started gradually climbing in mid-June and is now at $41.25. This is the highest Roblox shares have been since April.
The reason why investors initially moved away from Roblox is the slower-than-expected growth of their platform. The users have been engaging in other activities as the pandemic slowed down and are no longer as committed as they were before.
In February, Roblox saw 55.1 million daily active users, which represented a growth of 28% year over year. In May, that number dropped to 50.4 million and only 17% up year over year.
However, experts believe that Roblox weathered the challenging times and is now headed to recovery. Their business isn’t expected to take a hit in case of a recession due to low membership prices. Also, the company has a lot of wiggle room when it comes to monetizing its platform and using the advertisement opportunities.