The stock is down this year, but in the long run Roblox has the potential to generate huge returns for investors.
These popular growth stocks were recently pounded down to new 52-week lows, but the analysts who follow them expect them to recover.
As Netflix has demonstrated, once you reach a certain scale, you can turn user engagement into significant profit and gushing cash flows. Roblox (NYSE: RBLX) and Roku (NASDAQ: ROKU) are both much earlier on in their growth stories. Today, the companies count about 70 million users each compared to Netflix's pool of 240 million subscribers.