Roblox (NYSE: RBLX) stock rocketed 46% over the last year to a recent 52-week high of $62.42. The popular gaming platform reported accelerating growth in key metrics like daily active users ...

Free cash flow was $124 million last year compared to a $60 million loss in 2022. This success helped the company boost its cash holdings to over $3.2 billion while debt is sitting at $1 billion.

Cash flow is solid Roblox's management team isn't being reckless with their spending commitments, either. Today's elevated level of investment is contingent on two factors, they said.

Roblox (NYSE: RBLX) stock rocketed 46% over the last year to a recent 52-week high of $62.42. The popular gaming platform reported accelerating growth in key metrics like daily active users ...

How to Survive the Blood Moon Event in Roblox Grow A Garden 1. When the sky turns red, just start moving – no stopping unless you like disaster. Just keep dodging and maintain a safe distance ...

That said, since I expect Roblox to exceed its bookings guidance by $20 million this year, I believe it could report an FCF yield close to 13%, resulting in free cash flow of $552.6 million.

RBLX Stock Valuation -- 44x Forward Free Cash Flow Roblox holds a robust balance sheet, with approximately $1.4 billion of net cash, plus a further $1.6 billion of long-term investments.