Investors will have to weigh the benefits of massive user growth against ongoing losses and a rising valuation.

Once just a pixelated playground for kids, Roblox (RBLX) has grown into a full-blown digital universe where users play, build, and monetize their own worlds. Known for its build-it-yourself worlds ...

Like YouTube, Roblox started as an online stage for young creators. As the company grows toward 100 million active daily users, contributors are making big money selling games.

So is Roblox a no-brainer buy right now? Roblox is still expanding at an impressive rate, but it hasn't proven its business model is sustainable yet.