Roblox: Riding the AI-Driven Metaverse Wave with Momentum and Vision

In a market hungry for innovation, Roblox (RBLX) has emerged as a standout player in the AI-powered metaverse race, backed by Jim Cramer's bullish endorsement and a user base expanding at breakneck speed. With its unique blend of creator-driven content, cutting-edge AI infrastructure, and strategic partnerships, Roblox is positioning itself not just as a gaming platform but as the operating system for the next era of digital interaction. Let's dissect why this stock is worth watching—and possibly buying.

Cramer's Seal of Approval: A Vote of Confidence for High-Growth Stocks

Jim Cramer's recent praise on CNBC's Mad Money is a significant tailwind for Roblox. He highlighted its 8.5% post-IPO stock rise to $70/share (as of 2025), a $38.54B market cap, and 82% YoY revenue growth to $923.9M. Cramer acknowledged the stock's premium valuation (17x 2022 bookings) but argued it was “relatively cheaper” than peers like Snap and Unity. His price target of $83.50 (20x next-year bookings) suggests patience: investors should buy on dips of 5-8%—a strategy that aligns with Roblox's volatile yet upward trajectory.

User Growth: A Demographic Goldmine and Sticky Engagement

Roblox's 79.5M daily active users (DAUs) as of June 2024—up from 32.6M in 2020—reflect its mastery of Gen Alpha and Gen Z audiences. These users spend 2.4 hours/day on the platform, fueling a flywheel of engagement. Crucially, 85% of users are under 35, a demographic primed to drive future spending. The Friend Referral Program, which boosts session lengths by 90%, and co-play features (1.9x longer sessions than solo play) further cement loyalty.

AI Infrastructure: The Engine Behind the Metaverse's Scalability

Roblox's 250 ML inference pipelines and hybrid cloud infrastructure (tens of thousands of CPUs/GPUs) are the backbone of its AI-driven vision. Partnerships with NVIDIA—leveraging Omniverse for 3D modeling and GPU power—enable tools like the Cube 3D foundational model, which generates 3D assets from text prompts. This reduces creation time for developers and empowers users to build immersive experiences.

The $923M earned by creators in 2024 (up 25% YoY) underscores the platform's economic engine. Tools like the Mesh Generation API and real-time translation not only streamline workflows but also open global markets. Even a June 2025 outage affecting 107,000 users was swiftly resolved, proving Roblox's infrastructure resilience.

Synergies with Emerging AI Needs: A First-Mover Advantage

Roblox's $38.54B valuation isn't just about today's metrics—it's about owning the AI-metaverse intersection. Its open-source Cube 3D model and ROOST nonprofit (focused on safety tools) foster a collaborative ecosystem, reducing dependency on in-house R&D. Meanwhile, 418% YoY free cash flow growth (2024) signals operational efficiency, even as net losses narrow.

The company's hybrid cloud strategy—balancing private data centers for cost control and public cloud flexibility—ensures scalability. As the metaverse evolves, Roblox's infrastructure can handle 1B+ daily requests and support multimodal 3D/4D content, from generative avatars to dynamic environments.

Risks and Mitigations

• Dependency on Young Audiences: While Gen Z is a growth driver, retaining users as they age requires evolving content. Roblox's E.L.F. Beauty financial literacy game (launched 2025) hints at diversifying into educational/experiential content.
• Competitor Pressure: Meta's Horizon Worlds and Microsoft's Minecraft metaverse pose threats. Roblox's creator-driven model and first-mover AI tools create a moat.
• Valuation Concerns: At 17x bookings, the stock is pricey, but Cramer's price target implies upside if growth sustains.

Investment Thesis: Buy the Dip, Play the Long Game

Roblox is a high-beta play on the metaverse's potential, with Cramer's blessing and a $100B+ addressable market. Its AI tools and partnerships are de-risking execution, while user and creator metrics remain robust.

Actionable Takeaway: - Entry Point: Use Cramer's 5-8% dip strategy. If RBLX slips below $65 (as of June 2025), consider accumulating. - Hold for: 1–3 years to capitalize on AI-driven monetization and market share gains. - Watch for: Cube 3D adoption rates, 4D content launches, and free cash flow turning positive.

Final Thoughts

Roblox isn't just a game—it's a platform for the digital future, where AI and creativity converge. With Cramer's stamp of approval, a 79.5M-strong user base, and infrastructure fit for a billion DAUs, this stock is primed to lead the metaverse charge. For investors willing to ride the volatility, Roblox offers a compelling bet on tomorrow's digital economy.