The AI system has detected and reported 1,200 cases to the National Center for Missing and Exploited Children this year.

As investors evaluate Roblox, it's critical to understand the risks beneath the surface. Here are two key red flags that deserve your attention before you buy the stock. Image source: Getty Images.

Roblox spends heavily on infrastructure to support real-time multiplayer capabilities across more than 100 million users, alongside constant investments in trust and safety.

2. Roblox's valuation is pricing in a perfect outcome Despite its lack of profits, Roblox is trading at a premium, recently at roughly 21 times the price-to-sales (P/S) ratio.

Roblox's red flag to watch The issue with Roblox's stock right now is its high valuation while still being unprofitable.

RBLX Free Cash Flow (Quarterly) data by YCharts Roblox estimates its full-year bookings to fall between $5.87 billion and $5.97 billion, which would be a 34% to 37% YOY growth. Roblox's red flag ...