Three years ago, Roblox went public—here's the current value of a $1,000 investment.

Over the past two decades, Roblox has evolved into a highly engaging online platform where its vast user base can create avatars, traverse virtual realms, and enjoy games designed by both other users and Roblox Studios.

The platform allows anyone, from average users to big-name brands like the NFL and Gucci, to create content and games, contributing to its extensive collection of virtual experiences. Additionally, the platform functions as a digital social hub where users can connect with their friends online and participate in virtual events.

Users can earn money by designing digital clothing for avatars on Roblox. One 22-year-old user made over $100,000 in a year from selling her designs.

Millions of gamers spend time on Roblox

It's safe to say it's a pretty popular app.

As per Roblox's fiscal Q2 2024 earnings report, the company had an average of 79.5 million daily active users in the second quarter of 2024.

In fiscal year 2023, Roblox had 68.4 million daily active users, with a majority of them being under 25 years old. The platform attracts players of all ages.

• Under 9 years old: 21%
• 9 – 12 years old: 21%
• 13 – 16 years old: 16%
• 17 – 24 years old: 23%
• 25+ years old: 18%
• Unknown: 1%

In July, according to Newzoo, the second-most popular PC game by monthly active users was Fortnite, with Minecraft being the most popular, and Fortnite being the fifth-most popular game by monthly average users on PlayStation and Xbox in 2023.

In 2024, the global games market is projected to generate approximately $187.7 billion in revenue, with PC gaming revenue accounting for about 20%, according to Newzoo.

Stressed about money? Try our new online course.

However, gamers are spending less and less time playing.

The average quarterly playtime decreased by 26% between the first quarter of 2021 and the last quarter of 2023 due to the lifting of global Covid-19 pandemic lockdowns and players' preference for other forms of entertainment, according to Newzoo.

During the second quarter of 2024, Roblox players spent 17.4 billion hours on the platform, which is a 24% increase compared to the same time period in the previous year, according to Roblox's Q2 2024 earnings report.

"Roblox's founder and CEO, David Baszucki, stated in the earnings report that the platform's unique content ecosystem continues to attract users of all ages from around the world. He added that the company will continue to invest in its core platform to help creators build better and safer experiences and reach more people."

How much you would have if you invested $1,000 in Roblox

Roblox, which has been in existence for about 20 years, started trading on the NYSE three years ago under the symbol RBLX. On March 10, 2021, the company's shares were priced at $64.50.

CNBC determined the current value of a $1,000 investment in Roblox if it had been made one year ago and at the time of its public listing, using the company's Aug. 21 closing share price of $43.35.

If you invested one year ago

• Percentage change: 61%
• Total as of Aug. 21: $1,608

If you invested when Roblox went public in March 2021

• Percentage change: -33%
• Total as of Aug. 21: $672

The investing strategy most financial experts advise

The stock market is unpredictable and various factors can influence a company's stock price. A company's current stock market standing does not guarantee its future success or failure.

Financial experts suggest a hands-off approach to investing, such as in low-cost index funds, rather than chasing the hottest stock at any given moment.

Such funds aim to replicate the performance of a market index like the S&P 500 by spreading your investment dollars across a variety of companies, including Microsoft, Nvidia, and Amazon.

Since March 10, 2021, the S&P 500 has increased in value by a little over 44%, while it is up by close to 28% compared with 12 months ago, according to CNBC's calculations.

Actively managed funds are typically more expensive than index funds, which are not managed by a fund manager.

Sign up for CNBC's online course to learn how to manage your money effectively and boost your savings, investments, and confidence. Use code EARLYBIRD for a 30% discount through September 2, 2024.