[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Broken Moats [@BrokenMoats](/creator/twitter/BrokenMoats) on x 2186 followers Created: 2025-07-16 20:37:40 UTC Some actual things to keep in perspective as people have lost their mind on $RBLX nearing $90B in market cap and 10x the GP$/EV valuation as competitor $EA (52x v. 5x) A viral hit will need to be repeated to keep engagement - A developed hit inside the platform competes w/ other games on the same platform (screen time is limited it does not stack). Strong competition for limited screen time is coming - further adoption of switch X & GTA launch in coming months Platform or marketplace argument is farfetched - The average user spends $10/year on the platform (so if you think all of the sudden a bunch of preteens are going to be surging discretionary spending across multiple products and categories is very aspirational and not rooted in reality - No different than EA or TTWO owning various game studios and publish various titles - the difference those are proven and repeatable franchises (FIFA, CoD, GTA) grow a garden is not. Need to look at the structure of the business model - $RBLX is a XX% gm business (similar to spotfiy which also does not own or create its content). EA and TTWO are substantially higher due to their owned IP and development on proven hits to leverage costs overtime Lets not forgot the gigantic insider sales before the lockup period (now at dramatically lower prices) Usage is not revenue, becarful extrapolating concurrent user growth data into revenue when Q2 drops-- bot traffic is through the roof on this (X) platform in the past XX days. Same is likely true on RBLX that may mean users surge, but revenue deflates on per user basis (and erodes gameplay overtime)  XXXXX engagements  **Related Topics** [$ea](/topic/$ea) [10x](/topic/10x) [$90b](/topic/$90b) [$rblx](/topic/$rblx) [roblox corp](/topic/roblox-corp) [stocks communication services](/topic/stocks-communication-services) [$ev](/topic/$ev) [electronic arts inc](/topic/electronic-arts-inc) [Post Link](https://x.com/BrokenMoats/status/1945583634288656681)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Broken Moats @BrokenMoats on x 2186 followers
Created: 2025-07-16 20:37:40 UTC
Some actual things to keep in perspective as people have lost their mind on $RBLX nearing $90B in market cap and 10x the GP$/EV valuation as competitor $EA (52x v. 5x)
A viral hit will need to be repeated to keep engagement
- A developed hit inside the platform competes w/ other games on the same platform (screen time is limited it does not stack).
Strong competition for limited screen time is coming - further adoption of switch X & GTA launch in coming months
Platform or marketplace argument is farfetched - The average user spends $10/year on the platform (so if you think all of the sudden a bunch of preteens are going to be surging discretionary spending across multiple products and categories is very aspirational and not rooted in reality
- No different than EA or TTWO owning various game studios and publish various titles - the difference those are proven and repeatable franchises (FIFA, CoD, GTA) grow a garden is not.
Need to look at the structure of the business model - $RBLX is a XX% gm business (similar to spotfiy which also does not own or create its content). EA and TTWO are substantially higher due to their owned IP and development on proven hits to leverage costs overtime
Lets not forgot the gigantic insider sales before the lockup period (now at dramatically lower prices)
Usage is not revenue, becarful extrapolating concurrent user growth data into revenue when Q2 drops-- bot traffic is through the roof on this (X) platform in the past XX days. Same is likely true on RBLX that may mean users surge, but revenue deflates on per user basis (and erodes gameplay overtime)
XXXXX engagements
Related Topics $ea 10x $90b $rblx roblox corp stocks communication services $ev electronic arts inc