![]() ![]() This lowers per-share earnings, which investors don't like to see.Īnother issue that has the bears somewhat worried is Roblox's business model. When Roblox finally does start earning profits, those profits will be divided across a broader shareholder base. Roblox's weighted average shares outstanding have increased nearly 37% in just the past year. This increases Roblox's share count and dilutes shareholders' stock value. To reduce employee expenses but still attract employees, the company pays a significant share of its employees at least some of their salaries using stock-based compensation. While revenue has risen swiftly at Roblox for the last several years, the company has had a tougher time returning profits to shareholders. ![]() Roblox generates revenue by selling these users an in-game currency called Robux which provides them access to premium items and experiences. Parkev Tatevosian: Roblox did an excellent job acquiring users to its metaverse platform, but it wasn't all that hard considering the popular gaming platform is free to join and use. Bear case: Roblox is not a profitable business ![]()
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