Roblox (RBLX) or Unity Software (U)?Let’s share which stock you would buy for long-term 10x growth? RBLX or U? Or both? I will go for Roblox with larger position.
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I own Unity, have not bought Roblox or looked at it seriously just yet. Roblox is a pretty amazing platform for kids and has a large revenue stream (close to a billion dollars last year, it’s a little bigger than Unity), and it could grow into something more, but I see a vastly larger universe of applications for Unity in a lot of different industries as 3D immersive information and entertainment becomes more mainstream. Both trade at massively optimistic valuations of 30X revenue (U) or 40X (RBLX), there’s clearly a lot of love for both among investors, and both companies have visions of a dominant future as other people use their software platforms to build the next great thing in gaming (or whatever else), but the vision makes a little more sense for me with U than it does with RBLX. I’d be curious to hear the other side of that for those who have dug deep into Roblox’s potential.