And with Roblox stock trading at a premium valuation, it's hard to justify a buy for the stock even though it has some attributes of a potential long-term winner.

2. Roblox's valuation is pricing in a perfect outcome Despite its lack of profits, Roblox is trading at a premium, recently at roughly 21 times the price-to-sales (P/S) ratio.

Roblox has a great business model. It generates revenue from users buying virtual currency (Robux) to unlock premium content.

2. Roblox's valuation is pricing in a perfect outcome Despite its lack of profits, Roblox is trading at a premium, recently at roughly 21 times the price-to-sales (P/S) ratio.

Roblox gift cards are a safe and secure way of being able to buy Robux or Roblox Premium. Here's everything you need to know to redeem them.

Kids having fun can't be quantified, which means Roblox likely has a bright future in the long term. Click here to read more of my analysis of RBLX stock.

Roblox (RBLX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).