Once a prominent figure in the metaverse landscape, Roblox is facing a challenging year ahead in 2024 as its investors express concerns about the company’s ability to maintain profitability.
Roblox, once lauded as a metaverse hub in the gaming industry, is now preparing for a difficult period as its financial situation worsens, according to Sahil Alvi, the founder of Neuron Partners and an early supporter of Roblox.
In an interview with Fortune, Alvi openly shared his frustrations, pointing out that Roblox’s stock is still below its IPO price from Q1 2021.
Although Alvi did not disclose the exact stake his firm holds in Roblox, he has been advocating for Roblox’s CEO, David Baszucki, to consider taking the company private for several weeks now. In a recent open letter on LinkedIn in late November, Alvi highlighted the challenges facing Roblox and emphasized the importance of finding a clear path to profitability.
Roblox has not responded publicly to Alvi’s letter yet. The Neuron Partners founder believes that 2024 will be a critical year for the gaming company, with only approximately $2.1 billion in liquidity remaining for the California-based firm. He stressed the urgency for the management team to prioritize profitability to avoid financial hardship.
At the time of writing, RBLX is trading at $46.4, as per data from Google Finance. Despite a year-to-date increase of over 66%, the stock is still far below its peak in November 2021 and its IPO price of $70.
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