 Hello and welcome to this video in this one. We'll go through roblox and whether you should buy this stock as IPs Entries on to the stock market What we're going to go through is some information on this company some deep research into this company Whether you should buy it or not and the information on that some of the positives some of the negatives so we're gonna go go it into a lot of information on this company and And hopefully this this will be fairly helpful now. I do have to say obviously. I'm not a financial advisor I'm a business teacher in my daily life, but I'm by no means an expert when it comes to the stock market But let without fair I do because I respect the time Let's get right into should you buy roblox stock and is there going to be potential huge growth on this? I will start by saying that I think there is massive growth potential on this stock and throughout this video I'm going to go through why but I'm also going to be cautious about it as well in terms of some of the cautions that you Some of the aspects you should consider as well, but let's get right into this. Okay So what is roblox? What is it? So roblox mission is to bring the world together through play We enable anyone to imagine create and have fun with friends as they explore millions of immersive 3d experience or built by a global community of developers So ultimately what the what the game is is it's it's a multiple multiple Gamers that basically developers can create within a game. So what does that mean? It means that there's always fresh and new games coming on on the platform by Developers creating these games and it's in like a roblox kind of block graphic format as well, which is It's not not not 100% comparisons to Minecraft at all But you know in terms of kind of a that kind of kind of art style in a way a little bit It's powered by creators which roblox is powered by a global community of two million developers Who produce their own immersive multiplayer experiences each month using roblox studio our intuitive? desktop design tool tool any experience imaginable And imaginable can be created by roblox. So they've got a enabled software that Developers can use to create games on the roblox platform This means that games are always being created and this is means that this game is going to stay fresh and new And we'll go more into that as to why and really really go into the information on that in detail So how popular so roblox is ranked as one of the top online entertainment platforms for audiences Under the age of 18 based on average mute monthly visits and time spent our popularity is driven purely by the human community With millions of people signing up through word of mouth every month Word of mouth so you know this game is prop popular You know it's got growth potential when it can grow through word of mouth You know the more that it can grow through word of mouth the less money that's needed to be spent on marketing Now I'm sure that they have looked at their information that they do spend money on marketing But if they can also expand the game players through word of mouth, that's even better Why because it's a community based game. It's not a single-player game. It's a community based one So that is why spreading through word of mouth massively and that has huge growth potential as us as investors Okay, by the way, if you're new to the channel, I am a stock market new to stock market videos really small channel So if you leave the video a thumbs up that really helps me out. It gets it up in the YouTube algorithm So any sort of help you can provide I'd be much appreciated or maybe even give a subscribe If you feel that any information I give in this video is useful enough for Subscribe, okay, so so that's just a bit about robots It's okay. So when was it released it is released in 2006 So this company is not just suddenly appeared two years ago You know, you have a lot of these gaming companies and to be fair enough, you know There's a lot of them that are really successful But they don't have a lot of historical data behind them You know, they've just popped in two years and they've gone massively popular Which is brilliant and that happens with games But this game Roblox has been since here since 2006. So this game has got massive longevity Huge amount of longevity Okay, so that's important. So and it's got millions of users Okay, which is great that are using it on a daily basis millions of users users and it's got steady growth What I thought would be interesting to do is to just go on Google trends and see what the interest has been over time since 2006 to 2019 now and you'll notice that there's been steady growth throughout overall for this game in terms of the interest in the game and Ultimately what you know in terms of the interest of the game leading to the plays of the game So we've got steady growth and it's historical data where we can see that this game isn't just a flash in the pan of A game that last six months it gets really hyped up It's fantastic and then players die off actually that the players of you know, they've increased steadily over a number of years So that's very important. So some statistics are thirty seven billion hours played since 2008 37 billion sir. This game has a lot of interactivity involved with it Three billion total engagement hours each month again very high engagement in the game 5.2 million peak concurrent users, which is a lot of users involved and 241 million dollars paid to the community developers Okay, so there is a lot of appeal in this game bent many people play it on a regular basis It's got a lot of engagement. It's got a loyal fan base to the game Which is important to see because that's how word of mouth is also spread is you know If a individual feels loyal to a to a company or a brand then they're more likely to tell others about that company or brand So you can see that there's some key loyalty factors there Which is good for growth in terms of spreading word of mouth But it's also good for sustainability of the company because they're continuously playing. Okay So another aspect is that it's accessible in a range of devices. So you've got PC Mac iOS Android Amazon Xbox Oculus Rift and HT HTC Vibe. So it's in it's accessible in a range of platforms So this means that it's reaching a larger target market a global audience Which is really good because it's going to increase the growth potential The more accessible the game is the more people who are going to download the game and more people who are going to play it Which is it's brilliant and it's also interesting that they're kind of working with VR virtual reality sort of Platforms there and so there's potential growth in that sort of sector whilst also mobile which we know is a booming gaming sector right now So they've got mobile apps there as that sector just grows. So yeah a lot of accessibility So the leadership so we've got David is either founder and CEO of Roblox His vision is to build a global platform that brings people together David was named one of the Goldman Sachs 100 most intriguing entrepreneurs in 2017 2018 and 2019 he's also listed by comparably as one of the top CEOs for diversity in 2018 and 2019 So there's good ethics and ethics involved there He is regularly featured in the Wall Street Journal Tech Crunch Forbes business. So he's involved. It's very influential individual there and a capable CEO it seems for the company, okay So what are some of the positives of the brand? So we got accessibility I won't repeat the point there because I respect your time You know what I said about it's accessible to a range of devices the company has got prior history again. It's starting You know, he's been going for a long time. So they've got a good company prior history You've got sustainable growth over a long period of time, which is brilliant Competitive advantage because there is not particularly many games out that similar to this It's got a competitive advantage in the fact that it's always kept fresh and new by the developers creating new games within the same game It's got a strong brand in terms of a positive brand and high customer loyalty Differentiation again with it not being the the same game as every other every other game out there And the other thing is a profitable profitable business model So they use these things called row books which people can buy And then they can get cosmetics in the game or get upgrades in in some of the mini games that are involved within row blocks So it has a profitable business model So some of the negatives is that we don't know what the stock price will settle at It's IPO'd and we don't know where it's going to settle as it's you know a new stock onto the stock market So we have to think about that and try to think about what entry we want to get in So what would I say is it a buy? I would say yes It is a buy but you have to wait for the stock price to settle slightly see what see what happens This is a mid to long-term hold though Okay, and there's not a huge amount of hype so you could get a good price quite early as well So there's not much hype on this stock so it could be a potential buy at a cheap price So this is something that I'm certainly taking an interest in and something that I'm probably looking at investing in And I hope you found this video useful if you did then please leave the video a like Subscribe to the channel and share this video around if you can it's a small stock market video Again, I'm not a financial advisor do your own research business teacher, but I'm not a financial advisor so You know look at other perspectives But hopefully this this perspective from what information I've showed you is helpful and any support you can have you can give On the channel is very very much appreciated. So thanks for watching this video and I'll see you in the next one