This Stock is Like Meta Stock in 2012.

I continue to believe Roblox is evolving into a multi-billion user social network - I think it’s going to go head-to-head with Meta in the coming 5 years, in the battle for people’s time.

As happened with Meta and Amazon in 2022, the market punished Roblox for reinvesting capital into the business, with the Roblox stock declining 77% from the highs in 2021 to the 2022 lows. And much like is the case with the two former companies, Roblox’s investments in the 2021-2024 period set it up to become a Singularity Scaler. As AI models gets better, Roblox’s infrastructure investments now position it to create exponentially more and better user experiences at a marginal cost, with user growth, engagement and ultimately free cash flow per share likely tracking along.