Will Roblox's (RBLX) Hollywood Partnerships Unlock New Monetization Paths—or Crowd the Player Experience?

• Lionsgate, in partnership with Virtual Brand Group and Super League, recently launched The Strangers: Chapter 2 immersive survival event across multiple popular games on Roblox, coinciding with the Halloween season and targeting the platform's 111.8 million daily active users.
• The collaboration leverages Roblox's strong traction in the survival and horror genres, tapping into seasonal increases in player activity and offering exclusive digital items and experiences tied to major entertainment IPs.
• We'll now explore how these high-profile branded experiences, which highlight Roblox's monetization and engagement strengths, impact its broader investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Roblox Investment Narrative Recap

To be a Roblox shareholder today, you have to believe the company can scale its immersive platform and sustain engagement across a global user base, all while converting blockbuster branded experiences into meaningful monetization. The recent Lionsgate horror event showcases Roblox’s ability to win premium partnerships in high-engagement genres, but does not fundamentally change the most important short-term catalyst: continued international user and bookings growth, especially in the APAC region. The largest risk remains escalating expenses for content, infrastructure, and safety, which could pressure long-term profitability if monetization lags, these latest events haven’t materially altered that calculus.

Among the latest announcements, the expanded Mattel partnership stands out for its potential to extend Roblox’s demographic reach and reinforce IP-driven growth. Launching titles like Monster High directly onto the platform links Roblox with powerful entertainment brands, supporting the core catalyst of broadening user appeal and boosting average bookings per user.

But in contrast, investors should also keep a close eye on the rising costs associated with scaling creator payouts and global infrastructure...

Read the full narrative on Roblox (it's free!)

Roblox's outlook projects $9.6 billion in revenue and $903.3 million in earnings by 2028. This requires 33.5% annual revenue growth and an increase in earnings of $1.86 billion from the current $-952.3 million.

Uncover how Roblox's forecasts yield a $149.42 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Seventeen investor fair value estimates from the Simply Wall St Community range from US$14.10 to US$175 per share. Many are watching how Roblox’s investments in international expansion and branded content may influence future revenue growth and ultimately reshape these diverse expectations.

Explore 17 other fair value estimates on Roblox - why the stock might be worth as much as 37% more than the current price!

Build Your Own Roblox Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Roblox research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Roblox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Roblox's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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