Key Points in This Article:
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Jim Cramer recommends scouring the 52-week high list to find potential investments.
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While such a strategy targets growth, it may find stocks too volatile for retirees seeking stable, income-generating investments.
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Roblox (RBLX) is one stock on the list, up 185% in the past year, but it comes with a lot of risks attached that make it unsuitable for retirees needing stability and income.
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Cramer’s Market Wisdom and the 52-Week High List
Jim Cramer, the charismatic host of CNBC’s Mad Money, is a prominent voice in the investment world, known for his bold market insights and knack for spotting trends. In a June 8 article on TheStreet, Cramer advises investors navigating the volatile 2025 market, shaped by tariff uncertainties under President Donald Trump, to focus on stocks hitting 52-week highs.
He argues that this “new high” list, featuring companies like Broadcom (
Cramer emphasizes patience, urging investors to buy high-quality stocks from this list only after a 5% to 8% pullback, ensuring a margin of safety. He highlights the list’s value as a tool to identify potential winners, particularly U.S.-focused companies less exposed to trade war risks.
However, while Cramer’s picks may excite growth-oriented investors, some, like Roblox, are far too risky for retirees seeking stability and income.
Roblox’s Meteoric Rise and Speculative Nature
Roblox is a gaming and metaverse platform. RBLX stock has surged to $105.20 per share up 81% in 2025 and 185% higher over the past year. That’s why RBLX landed on Cramer’s 52-week high list.
While this growth is impressive, the company’s characteristics make it a risky choice for retirees, who should prioritize capital preservation and steady income over speculative gains. Roblox’s business model, centered on user-generated content and virtual experiences, thrives on the fickle engagement of younger audiences.
This exposes it to rapid shifts in consumer trends, where a decline in popularity could tank revenue. Unlike stable, dividend-paying stocks, such as Johnson Controls (NYSE:JCI) or Cintas (NASDAQ:CTAS), Roblox offers no dividend, depriving retirees of the passive income critical for covering living expenses in retirement.
Volatility and Lack of Profitability
Roblox’s volatility is another red flag. Its meteoric rise reflects speculative enthusiasm for the metaverse, a concept still in its infancy with unproven long-term viability. The near-tripling in value masks sharp price swings, as it has ranged between $36 per share and $105 per share during the past 12 months.
For retirees, such volatility risks significant capital erosion, especially during market downturns triggered by economic uncertainties like tariffs or rising interest rates. Roblox’s lack of profitability further heightens the risk. The company reported a net loss of $935 million in 2024, with no clear path to consistent earnings, unlike established firms with predictable cash flows. RBLX also posted a $215 million loss in Q1.
Retirees cannot afford to bet on future profitability that may take years to materialize, if ever.
Regulatory and Competitive Risks
Regulatory and competitive pressures add to Roblox’s risk profile. The platform faces scrutiny over child safety and data privacy, with potential legal liabilities that could impact its finances.
Meanwhile, competition from other gaming and metaverse platforms, such as Epic Games’ Fortnite or emerging blockchain-based virtual worlds, threatens market share. These uncertainties make Roblox a speculative play, not a safe haven.
Cramer’s advice to buy on a pullback assumes a stock’s fundamentals justify a rebound, but Roblox’s reliance on unproven technology and lack of financial stability undermine this confidence. Retirees need investments that weather market storms, not amplify them.
For comparison, stocks like Broadcom or Netflix, also on Cramer’s list, offer more established business models, with Broadcom paying a dividend and Netflix offering consistent profitability. Roblox, however, is a growth stock with no such anchors, making it ill-suited for a conservative portfolio.
Why Retirees Should Steer Clear
For retirees, the focus should be on diversification and low-risk assets — think Dividend Aristocrats or bonds — not speculative tech stocks like Roblox. While its 52-week high signals momentum, this is driven by hype rather than substance. A sudden market correction or a shift in gaming trends could erase gains quickly, jeopardizing retirement savings.
Cramer’s broader strategy of monitoring the new high list is sound, but retirees must filter out high-fliers like Roblox. Instead, they should seek stocks with consistent earnings, dividends, and resilience to economic shifts, ensuring financial security over chasing the next big thing. Roblox’s allure may captivate younger investors, but for retirees, it’s a gamble best avoided.
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