Is Roblox stock worth following? Here are a few data points you should know.

The latest quarterly financial report shows that the daily active users of this gaming platform surged by 70% to 151 million, with a total user time reaching 4 billion hours (an increase of 91% year-on-year). The key is — the AI recommendation algorithm is really effective. They now have 7 experiences with daily active users exceeding 10 million, 5 of which are new projects launched last year, allowing users to find what they need quickly. This indicates a significant improvement in the search experience.

However, stay calm: RBLX's stock price has fallen 35% from its peak, and the current P/S valuation of 14 times is not exactly cheap, but considering the growth rate, it is still acceptable. The management said it can accommodate 1 billion users (currently only 150 million), theoretically there is still 7 times growth potential.

Risk points: The company is still operating at a loss, and employee incentives are issued in the form of stock, which will dilute shareholders. If they can control costs while expanding, this stock could perform very well. But the premise is that execution must keep up with growth.