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The ’Grow a Garden’ Boom: Is Roblox Stock Actually Unstoppable in 2025?

The ’Grow a Garden’ Boom: Is Roblox Stock Actually Unstoppable in 2025?

Author:
foolstock
Published:
2025-09-04 07:00:00
16
2

Roblox stock surges as 'Grow a Garden' phenomenon captures millions—but is this virtual green thumb sustainable?

Metaverse Momentum

Users flock to planting digital carrots over buying real ones—because who needs groceries when you can have pixelated produce? The platform's engagement metrics hit unprecedented levels, with garden-themed experiences driving record concurrent users.

Financial Fertilizer

Revenue blossoms as players spend real currency on virtual watering cans and decorative gnomes. Roblox converts playtime into profit with ruthless efficiency—proving once again that digital scarcity beats actual scarcity every time.

Wall Street's Greenhouse Effect

Analysts scramble to upgrade price targets while quietly wondering if we're all just paying for expensive dirt. Another day, another tech stock riding speculative hype rather than actual dividends—because traditional valuation models are so 2020.

The real question isn't whether Roblox grows—it's whether this garden is built on soil or sand.

Four people laugh at something on a smartphone.

Image source: Getty Images.

Why Roblox stock could continue rallying

Grow a Garden is about as interesting and exciting of a game as it sounds, centering around growing a garden. But it has, nonetheless, captivated millions of users around the world. And users can pay for premium seeds and other things to enhance their gardens, which is where purchases of Robux come into play.

How long the excitement around Grow a Garden will last is debatable, with some comparing it to Farmville, which was popular on' Facebook platform over a decade ago. And even years after the initial hype, millions of people continued to play Farmville. It was, however, eventually discontinued in 2020.

Roblox may benefit from Grow a Garden's HYPE for years. But with tens of millions of user-created games on its platform, there's always the potential for a new game to be the next big thing on Roblox. While the graphics may not be flashy or exciting like they may be on consoles, it's becoming evident that it's the user experience and connectivity with friends that matters most to young gamers, and that's where Roblox shines, and why it can continue to do well long after the Grow a Garden boom ends.

Roblox still faces significant challenges

As much as I see the potential in Roblox's growth, there's still the lingering concern about its lack of profitability. Through the first six months of this year, the company has generated $2.1 billion in revenue -- an increase of around 25% from the same period last year. But despite this terrific growth, the company's operating loss increased as well, from $540 million to $577 million.

Although the business's growth looks promising, investors shouldn't overlook the risks related to Roblox's financials. Without a stronger bottom line, it may be difficult for the gaming stock to continue rising a whole lot higher. Revenue growth alone can only take a stock so high before expectations rise and investors demand more.

Roblox's stock recently hit a new all-time high, beating the levels it reached back in 2021. But then, it fell from those highs, which may suggest that there is resistance at such a high valuation. Today, the stock trades at around 21 times its trailing revenue.

Why the stock can still be a good long-term buy

Roblox is an expensive stock to buy right now. But one of the reasons I'm still bullish on it is that it's only scratching the surface with respect to advertising. Earlier this year, it launched video ads that reward users for watching them with in-game benefits. If its ad business can create more growth for Roblox, that can help improve its overall margins and possibly pave a way to profitability in the future.

Grow a Garden is giving Roblox a boost today, but it's by no means the only popular game on the platform. Roblox has loads of potential to become even bigger and hopefully profitable in the future, which is why it can still be a good investment to hold on to for the long run, despite its already incredible performance thus far in 2025.

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