Roblox Stock Dropped 15% – Have You Assessed the Risk
Roblox (RBLX) stock is down 15.5% in 21 trading days. The stock still looks expensive which, combined with history of only modest recovery post dips, suggests some risk. Consider the following data:
- Size: Roblox is a $74 Bil company with $4.5 Bil in revenue currently trading at $106.84.
- Fundamentals: Last 12 month revenue growth of 32.7% and operating margin of -25.0%.
- Liquidity: Has Debt to Equity ratio of 0.02 and Cash to Assets ratio of 0.33
- Valuation: Roblox stock is currently trading at P/E multiple of -76.9 and P/EBIT multiple of -80.2
- Has returned (median) 4.9% within a year following sharp dips since 2010. See RBLX Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for RBLX, see Buy or Sell RBLX Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and RBLX drops another 20-30% to $75 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Strategic asset allocation and diversification help you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.
Below are the details, but before that, as a quick background: RBLX provides an online entertainment platform with free tools for developers to create, publish, and manage 3D experiences, serving customers globally across multiple regions.
2022 Inflation Shock
- RBLX stock fell 82.8% from a high of $134.72 on 19 November 2021 to $23.19 on 10 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 31 July 2025
- Since then, the stock increased to a high of $141.56 on 29 September 2025 , and currently trades at $106.84
| RBLX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -82.8% | -25.4% |
| Time to Full Recovery | 1178 days | 464 days |
It is a good thing to keep in mind how low RBLX could go during a downturn. And you should also check how the stock fared when compared with the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.