Jim Cramer - Mad MoneyRoblox CorporationRBLXBUYMar 22, 2021

He lost about 10% on this one, selling it last October. Reading about it makes so much sense, but then inference AI came along. He wouldn't touch it, despite the gap to price target.

Wrote covered calls last week. He made over $6. He wrote another call this week, expiring next Friday, for $3.50. If Roblox hovers at the current price, he'll net a $10 profit. Likes this long term, but the lawsuits are a concern that he's watching.

Most customers are under 18. User growth is accelerating, up 25% YOY. They are big in the US, sort of in Europe, but are expanding in south-east Asia, namely Indonesia. They have commerce API integration in the early stage of advertising that they will put on their platform. They have 600 million monthly users. Are generating lots of cash, but also spending that. They have a net lost. A great business that's growing over 30% in revenues and bookings. Their expect their community to generate $1 billion in creator earnings this year.

It isn't just a gaming stock, but an infrastructure play to own eyeballs that leads to advertising. Loves it.

Daily active users is up 26% YOY. Excellent growth in users and AUM. Is up 29% this month, so careful chasing it.

Was downgraded to sell today, but the $34 sell target is very off. The CEO continues to defy the naysayers. Are positioned between gaming and Mr. Beast, the NFL, NBA--an interesting eco-system where they build games that get interest today. Japan's business is growing well.

Just issue strong guidance. Daily active users, revenues, hours engaged were all up sharply. Japan and India show strong growth. Using AI you can speak to other users in other languages. Positive earnings remain a year away, but she likes this company.

Shares keeping going up and up, but can't recommend it now. The last quarter was pretty good.

RBLX is up 42% this year and will probably do well if rates pivot and the market turns back into a 'risk on' mode. It has about $500M net cash ($2.1B cash, $1.6B debt), and does have positive cash flow ($434M in the trailing 12 months, $369M in 2022). Sales are expected to show 50% growth this year and at least 15% in 2024 and 2025. It is still losing money but per share losses are expected to decline ($1.88 this year, then $1.32, $1.11). Insiders own 3.5% and have been minor net sellers in the past six months. We would, today, rate it a HOLD.
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RBLX is up 42% this year and will probably do well if rates pivot and the market turns back into a 'risk on' mode. It has about $500M net cash ($2.1B cash, $1.6B debt), and does have positive cash flow ($434M in the trailing 12 months, $369M in 2022). Sales are expected to show 50% growth this year and at least 15% in 2024 and 2025. It is still losing money but per share losses are expected to decline ($1.88 this year, then $1.32, $1.11). Insiders own 3.5% and have been minor net sellers in the past six months. We would, today, rate it a HOLD.
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Their last quarter was the first good one in a while, and the CEO is good. Don't sell it.

Upgraded today. If rates settle, this can hit $37. Don't add until Nov. 8 earnings, but bookings and daily active users are growing 25% YOY. A great long-term platform. May add share after earnings.

Is down 30% this year.  But last quarter, revenue was up 15%, bookings 15%, and average daily user use 25%. But this won't perform until they increase earnings, which she doesn't expect.

EPS of -48c was worse than -45c expected; sales were $899M, 2.7% better than expected. 
EBITDA of $183M was 88% better than expected. 
Roblox's inflection in bookings growth, driven by an expanding user base and increased engagement, bodes well for its sales, with the company lapping tough Covid-19 year over year comparisons. 
User gains continue to be aided by content advantage, which seems to be driven by enlargement beyond its core 9-13 year old user group as well as geographic expansion outside the US. 
The company may see positive revisions for its Ebitda and free cash flow amid an acceleration in the top line through 2023, though higher developer fees aimed at boosting content could be an offsetting factor. 
Bookings growth advanced to 22-24%, while hours engaged and daily active users both rose 19% in January, helping drive the number of unique payers on its platform. 
These were surprisingly decent results, with investors focused more on EBITDA and bookings than the earnings miss. 
The 8% short interest is likely covering some today, and we are seeing a fairly big shift in sentiment towards last year's losers right now.  
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Likes it. Earnings are coming and the street wants to know their daily active users number. In December, they had 65 million, up 18%, but the average booking for daily users is $7. These shares range between $30-40, so she sells calls close to $40, then closes it out closer to $30. They have cash flow and revenues, but remain in the growth stage.