CNBC’s Jim Cramer on Monday approved the purchase of shares in Roblox, the online gaming company that went public earlier this month.

“You have my blessing to take a position in Roblox right here now, although I obviously want it to be at a much lower level, but that’s the real deal,” said the Mad Money host.

Roblox closed the trading session on Monday at $ 70 per share, up 8.5% since it was directly listed on the New York Stock Exchange almost two weeks ago. Founded in 2004 by Erik Cassel and David Baszucki and headquartered in San Mateo, California, the company is valued at over $ 38 billion.

“I have to tell you, I really like this business model,” said Cramer.

The platform is particularly popular with the younger generations who create, share and play video games on the website. According to Roblox, daily active users increased 85% to 32.6 million in 2020, compared to 47% in 2019. The number of paying users more than doubled to around 490,000.

Roblox grossed $ 923.9 million last year, up 82% from $ 508.4 million in 2019.

“The home-stay economy allowed them to break out, but I bet they can maintain a lot of that flywheel-like dynamic going forward,” Cramer said.

Considering his subscription service, Cramer argued that the stock should be judged on its price / booking ratio. He pointed out that Wall Street analysts are forecasting bookings of $ 2.71 billion for the next year, meaning the stock will trade about 17 times in 2022.

“Quite expensive, but still geared towards something like Snap and a lot cheaper than Unity software, perhaps the closest comparison,” he said.

Cramer cautioned the stock could experience some volatility this year as the economy reopens fully and people spend less time at home and in digital spaces.

“But if it kept going, I wouldn’t pay more than $ 83.50 for this book, which is roughly 20 times bookings for the next year, at least not until we get more insight into how they did the rest of the year see expire. ” he said.

“That said, that’s good. I think it’s worth weathering a possible storm and I recommend buying something here,” he continued. “Then you could buy more on the way down, but only if you share my beliefs.”