are roblox stocks good

Roblox stock is one of the metaverse stocks to watch in the current stock market correction. The video game platform boasts solid sales growth in recent quarters amid the company's potential in the emerging metaverse investing theme. Shares are now pulling back sharply and are significantly off their 52-week high.

Full Answer

Is Roblox stock a smart investment?

Roblox's stock is richly valued, with its growth on the verge of falling off a cliff. School reopenings will significantly drive a decline in its core user base of 5- to 12-year-olds.

Should you buy Roblox stock?

Roblox Stock Plunges on Earnings Miss: 6 Metrics You Should See

1. Revenue surged 83%. Fourth-quarter revenue surged 83% year over year to $568.8 million. ...
2. Bookings rose 20%. The quarter's revenue bookings increased 20% year over year to $770.1 million. ...
3. Average daily active users jumped 33%. ...
4. Loss per share narrowed 17%. ...
5. Operating cash flow fell 32%. ...
6. January 2022 bookings are expected to edge up 2% to 3%. ...

Is Roblox worth investing in?

Vident Investment Advisory LLC bought a new position in shares of Roblox Co. (NYSE ... LLC now owns 4,763 shares of the company’s stock worth $360,000 after purchasing an additional 121 shares ...

Is it too late to buy Roblox stock?

Roblox has a market capitalization of US$37b, so it's too big to fly under the radar ... It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you ...

Is Roblox stock profitable?

Roblox has never been profitable, but the company's Q4 net loss widened by a wide margin. In the quarter, revenue grew 83% YOY to $569 million, but the net loss grew 144% to $143 million. The company's free cash flow also declined compared to the year-ago period, from almost $119 million to $77 million in Q4 2021.

Why is Roblox stock dropping?

Roblox stock was sinking after the videogame firm missed Wall Street's expectations for first-quarter adjusted revenue and reported a wider-than-expected net loss. Roblox (ticker: RBLX) reported bookings, a form of adjusted revenue, of $631.2 million, which was down 3% from the first quarter of 2021.

Is Roblox stock expected to rise?

Stock Price Forecast The 16 analysts offering 12-month price forecasts for Roblox Corp have a median target of 34.00, with a high estimate of 57.00 and a low estimate of 21.00.

Why are Roblox stocks going up?

Potentially driving the rally was Roblox's estimate that revenue is estimated to be between $194 million and $197 million, up 28% to 30% year over year. Daily active users in May were 50.4 million, up 17% on an annual basis, while hours engaged rose by 10% from last May.

Is Roblox undervalued?

Undervalued Stocks: Roblox Even after the downgrade, Goldman has assigned a price target of $50 for the stock. This would imply an upside potential of 35%. Clearly, the stock is undervalued even after discounting the slowdown concerns. Beyond the near-term concerns, Roblox is possibly the best metaverse play.

Did Google bought Roblox?

Today at 3pm, internet search giant Google announced its aquistion of startup game studio Roblox for a purchase price of 380 million dollars. Roblox is an online building game for kids.

What is Roblox stock prediction?

The median sell-side target price for Roblox is $40.00 at the time of writing as per S&P Capital IQ. This is equivalent to a modest +11% upside as compared to RBLX's last done share price of $35.93 as of June 27.

What is Roblox expected to hit?

The 17 analysts offering 12-month price forecasts for Roblox Corp have a median target of 39.00, with a high estimate of 78.00 and a low estimate of 21.00.

What is the potential of Roblox stock?

Recently, Goldman Sachs downgraded Roblox stock to “neutral.” Goldman also trimmed the price target for the stock from $108 to $50. Even if we consider the significantly lower revised price target, RBLX stock has an upside potential of over 40% from current levels.

Is Roblox a Buy or sell?

Roblox has received a consensus rating of Hold. The company's average rating score is 2.31, and is based on 7 buy ratings, 7 hold ratings, and 2 sell ratings.

How do I invest in Roblox stock?

How to buy Roblox shares: investing and tradingCreate or log in to your share dealing account and go to our trading platform.Search for 'Roblox'Select 'buy' in the deal ticket to open your investment position.Choose the number of shares you want to buy.Confirm your purchase and monitor your investment.

What company owns Roblox?

Roblox CorporationRoblox Corporation is an American video game developer based in San Mateo, California. Founded in 2004 by David Baszucki and Erik Cassel, the company is the developer of Roblox, which was released in 2006.

Who are the competitors of Roblox?

It lists its rivals as Amazon ( AMZN ), Google ( GOOG ), Facebook ( FB ), Disney ( DIS), Tencent, Unity, Netflix ( NFLX), and Instagram…to mention but a few. Just taking one of these businesses on would be difficult. It remains to be seen how Roblox will fare against them all, however.

How many hours engaged are there in Roblox?

And on both these barometers of operational health Roblox posted record numbers: 42.1 million DAUs, and 9,674 million Hours Engaged.

What is a RBLX?

Rob lox ( RBLX) is an online gaming platform enabling users to play and create games in a variety of genres using the company’s own proprietary programming engine, the Roblox studio. The company generates most of its revenue through micro-payments using its native Robux currency, which users purchase with real money and then use to gain other ...

Is Roblox being sued?

But there are other, more tangible risks on the horizon. The first is that Roblox is being sued by the National Music Publishers’ Association. The NMPA alleges that Roblox illegally used its members music on the gaming platform, and in the process made “hundreds of millions of dollars” off of such use.

Is Roblox a reliant app?

Also problematic is the fact that Roblox is heavily reliant on app stores for the downloading of its platform – a model which is highly vulnerable to competition pressure and the future policies of the app stores themselves.

Is Roblox an immersive game?

Yes, other applications are the best at their own thing – YouTube for video streaming, Ste am for games distribution – but no-one is creating the immersive ecosystem that Roblox is building.

Does YouTube fudge Roblox?

Roblox has vowed to defend itself – but history proves that even Google’s YouTube couldn’t fudge this issue, and the outcome, however it falls, is likely to be costly for the company.

How much is Roblox worth in 2021?

As of October 15, 2021, Roblox Corp had a $42.8 billion market capitalization, compared to the Software median of $1.92 billion. Roblox Corp only started trading within the last year so does not have performance data for the past year.

What is a good stock value?

Stocks with a value score from 0 to 20 are considered deep value, those with a score between 21 and 40 are a good value and so on.

What does it mean to buy stocks that are going up?

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

Do stocks get better grades?

Stocks receive better grades (higher scores) for having higher scores for the quality sub-components and worse grades (lower scores) for lower scores for the sub-components.

What does Roblox do?

Roblox's platform enables users to create simple games without any coding knowledge, share them with other users, monetize them with an in-game currency called Robux, and play other users' games.

What is the currency of Roblox?

Roblox's platform enables users to create simple games without any coding knowledge, share them with other users, monetize them with an in-game currency called Robux, and play other users' games.

How fast is Roblox growing?

Roblox was already popular with tween users prior to the pandemic, but stay-at-home measures caused its growth in revenue and bookings (the amount of money spent on Robux) to spike last year:

Is Roblox a divisive stock?

After that roller-coaster start, Roblox now trades in the low $80s, but it remains a divisive stock. The bulls will praise Roblox's popularity with tween users, its overseas expansion plans, and its lack of meaningful competitors. On the other hand, the bears will note that the company's losses are widening, the stock's valuations are frothy, and Roblox faces tough post-pandemic comparisons over the next few quarters.

Can Roblox overcome the looming slowdown?

As Roblox's top-line growth decelerates, investors will likely scrutinize its widening losses and its overwhelming dependence on tween users.

What is Roblox Corporation?

Roblox Corporation develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset which allows developers and creators to build, publish and operate 3D experiences and other content. The company also provides Roblox Cloud, a solution which provides services and infrastructure to power the human co-experience platform. Roblox Corporation is based in San Mateo, California.

What are the different grades for stocks?

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

What is a Zacks portfolio tracker?

Zacks Portfolio Tracker on Zacks.com provides 24/7 monitoring of your stocks and will give you the information you need to help you determine when to buy, hold or sell your stocks. You'll receive continuously updated Zacks Rank and Style Scores, Earnings Estimate Revisions, Broker Recommendation Changes, Earnings Surprises and more. Note that you should also add your mutual fund and ETF positions to monitor changes in their Zacks Rank as well.

How many X is Zacks?

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

How many sectors are there in Zacks?

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.