2024

David

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Once a key player in the metaverse realm, Roblox anticipates a challenging 2024 as its investors voice concerns regarding the company’s ability to achieve sustainable profitability. 
<a href="https://crypto.news/tag/roblox/" target="_blank" rel="noreferrer noopener">Roblox</a>, previously touted as a <a href="https://crypto.news/tag/metaverse/" target="_blank" rel="noreferrer noopener">metaverse</a> hub within the gaming platform space, is gearing up for a tough year ahead as its financial health continues to deteriorate, as per Sahil Alvi, the founder of Neuron Partners, an early backer of Roblox. 
In an <a href="https://fortune.com/2023/12/28/roblox-2024-investor-frustrations/" target="_blank" rel="noreferrer noopener">interview</a> with Fortune, Alvi did not hide his frustrations, noting that Roblox’s shares are still far from its IPO price achieved in Q1 2021. 
<blockquote class="wp-block-quote"> 
 “We’ve been watching the stock languish for the better part of two years. It doesn’t seem the leadership team has gotten the memo that times have changed and markets no longer reward growth for growth’s sake.” 
 Sahil Alvi 
</blockquote> 
 You might also like: <a href="https://crypto.news/metaverse-technology-is-still-immature-but-in-30-years-everyone-will-use-it/"> ‘Metaverse technology is still immature, but in 30 years, everyone will use it’ </a> 
While Alvi did not detail his firm’s stake in Roblox, he has openly urged Roblox’s CEO, David Baszucki, to take the firm private for a few weeks now. In a late November <a href="https://www.linkedin.com/pulse/open-letter-from-neuron-roblox-ceo-sahil-alvi-khan-qleve/" target="_blank" rel="noreferrer noopener">open letter</a> published on LinkedIn, Alvi addressed challenges around Roblox, stating that a path to profitability “is not clear for the company.” 
<blockquote class="wp-block-quote"> 
 “[…] perhaps taking Roblox private may indeed be one of the solutions to stanch the leakage of shareholder value in Roblox stock.” 
 Sahil Alvi 
</blockquote> 
Roblox has made no public comments on Alvi’s letter so far. The Neuron Partners founder says 2024 will be crucial for the gaming firm, as the California-based company has only left nearly $2.1 billion in liquidity, adding that the firm management team “need to get dead serious about becoming profitable before the company finds itself in financial dire straits.” 
<blockquote class="wp-block-quote"> 
 “2024 is going to be a crucial year, where we take a view whether management is moving the company towards a sustainably profitable business.” 
 Sahil Alvi 
</blockquote> 
As of press time, RBLX is trading at $46.4, according to data from Google Finance. Although the shares are up more than 66% year-to-date, the mark is still far from not only its all-time high of November 2021 but also from Roblox’s IPO when RBLX price was at $70. 
 Read more: <a href="https://crypto.news/metaverse-supporter-roblox-reportedly-asking-employees-to-return-to-office/"> Metaverse supporter Roblox reportedly asking employees to return to office </a>

Roblox braces for crucial 2024 amid rising investor concerns

crypto.news

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