In its near 20-year existence, Roblox has grown into an immersive online platform that allows its millions of users to create avatars, explore virtual worlds and play games created by other users and Roblox Studios.

Anyone from the average user to big-name brands like the NFL and Gucci can create content and games on the platform, which helps fuel its massive library of virtual experiences. The platform also serves as a digital social hub where users can connect with their friends online and attend virtual events.

On top of that, users can monetize the content they create on Roblox. One 22-year-old user raked in over $100,000 in one year from selling digital clothing she designed for avatars on the platform.

Millions of gamers spend time on Roblox

It's safe to say it's a pretty popular app.

Roblox has 79.5 million average daily active users as of the second quarter of 2024, according to the company's fiscal Q2 2024 earnings report released on Aug. 1.

And the gaming platform attracts players of many ages. In fiscal year 2023, Roblox counted 68.4 million daily active users, a majority of them younger than 25. Here's the breakdown by age:

• Under 9 years old: 21%
• 9 – 12 years old: 21%
• 13 – 16 years old: 16%
• 17 – 24 years old: 23%  
• 25+ years old: 18%
• Unknown: 1%

It was the second-most popular PC game by monthly active users, behind Minecraft, as of July, according to data from Newzoo, a gaming market research firm, and the fifth-most popular game by monthly average users on PlayStation and Xbox in 2023.

Overall, the global games market is expected to generate around $187.7 billion in revenue in 2024, with PC gaming revenue expected to account for a little over 20%, according to Newzoo.

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However, gamers are spending less and less time playing.

Average quarterly playtime decreased by 26% between the first quarter of 2021 and the last quarter of 2023 as the Covid-19 pandemic era lockdowns lifted globally and players opted for other forms of entertainment, Newzoo reports.

That being said, Roblox players spent 17.4 billion hours on the platform during its second quarter of 2024 — a 24% increase compared with the same time period last year, per Roblox's Q2 2024 earnings report.

"The dynamic Roblox content ecosystem is unique and our platform continues to attract users of all ages from across the globe," David Baszucki, founder and CEO of Roblox, said in the earnings report. "Going forward, we will continue to invest in our core platform to help our creator community build better and safer experiences and reach more people."

How much you would have if you invested $1,000 in Roblox

While Roblox has been around for around two decades, the company began trading on the New York Stock Exchange just three years ago under the ticker symbol RBLX. On March 10, 2021, Roblox began trading at $64.50 per share.

CNBC calculated how much a $1,000 investment in Roblox would be worth now if you had invested in the company both one year ago and when it went public. CNBC's calculations are based on Roblox's Aug. 21 closing share price of $43.35.

If you invested one year ago

• Percentage change: 61%
• Total as of Aug. 21: $1,608

If you invested when Roblox went public in March 2021

• Percentage change: -33%
• Total as of Aug. 21: $672

The investing strategy most financial experts advise

The stock market is fickle by nature and any number of circumstances can cause a company's stock price to rise or drop. A company's current stock market performance isn't necessarily an indication of how it will fare over the long term.

Rather than chasing whichever stock happens to be hottest at the moment, most financial experts recommend a more hands-off approach, such as investing in low-cost index funds.

These types of funds aim to replicate the performance of a market index like the S&P 500. Investing in such a fund spreads your investment dollars across a variety of companies, such as Microsoft, Nvidia and Amazon.

The S&P 500 is up by close to 28% compared with 12 months ago, according to CNBC's calculations. Its value has increased by a little over 44% since March 10, 2021.

Plus, since index funds aren't actively managed by a fund manager, they tend to cost less than investing in actively managed funds, which can come with pricey annual fees.

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