is roblox good stock

by Charles Braun 8 min read
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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.Jun 14, 2022

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 ...

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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.

Does Roblox have its own stock?

On March 10, 2020, Roblox went public on the stock market. Meaning you can buy shares in the company on the New York Stock Exchange and own a stake in the game maker.

Can you invest in Roblox stocks?

You can choose between buying Roblox stock outright or purchasing an ETF. An exchange-traded fund is a financial vehicle that contains a weighted basket of stocks in a sector or geography and can be traded much like you would an individual company's stock.

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.

Will Roblox pay a dividend?

Does Roblox pay dividends? We don't currently pay and don't anticipate paying dividends for the foreseeable future.

Why is Roblox stock 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.

What will be the price of Roblox stock?

$29.94$ 30.30CloseChgChg %$29.94-1.87-5.88%

How do Roblox stocks work?

Investing in Roblox sharesCreate 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.

Why should you buy Roblox?

Why buy: Huge advertising potential in the metaverse. The Roblox platform is a digital world with metaverse characteristics where more than 47 million daily active users can interact and play games made by developers. Roblox has a digital currency called Robux, which users purchase with cash or credit card.

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.

Is Roblox losing money?

Roblox reported having 32.6 million daily active users at the end of 2020, up 85% from the year-ago period. Revenue jumped 82% in the year to $924 million. It had a net loss of $253 million in 2020, vs. a $71 million loss in the prior year, according to the Roblox IPO filing.

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's consensus rating and price target?

According to the issued ratings of 16 analysts in the last year, the consensus rating for Roblox stock is Hold based on the current 2 sell ratings,...

Do Wall Street analysts like Roblox more than its competitors?

Analysts like Roblox stock less than the stock of other Consumer Discretionary companies. The consensus rating for Roblox is Hold while the average...

Do MarketBeat users like Roblox more than its competitors?

MarketBeat users like Roblox stock less than the stock of other Consumer Discretionary companies. 50.00% of MarketBeat users gave Roblox an outperf...

Is Roblox being downgraded by Wall Street analysts?

Over the previous 90 days, Roblox's stock had 3 downgrades by analysts.

Does Roblox's stock price have much upside?

According to analysts, Roblox's stock has a predicted upside of 11.34% based on their 12-month price targets.

What analysts cover Roblox?

Roblox has been rated by Atlantic Securities , Benchmark , Citigroup , Daiwa Capital Markets , Deutsche Bank Aktiengesellschaft , Jefferies F...

What is a RBLX?

Is Roblox a good company?

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 defending itself?

Roblox’s first quarterly results as a publicly listed company were surprisingly good; so good in fact that RBLX share price jumped 20% – from $64 to $77 – the day that the results were announced. The company missed on its EPS expectations, but this was about the only negative thing to come out of it.

Is Roblox a reliant app?

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. Free Stock Tools - Financhill. Close. Yes.

Is Roblox an immersive game?

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 being sued?

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.

Investing in Stock

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.

Latest () Stock News

Read on to learn how grades on certain key metrics to see whether it meets your investment needs.

Grading Stock

As of , had a $0.0 market capitalization, compared to the median of $ . only started trading within the last year so does not have performance data for the past year. Sign Up to Receive a Free Special Report That Shows How A+ Investor Grades Can Help You Make Investment Decisions

Other Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement.

Stock: Bottom Line

In addition to Value, Growth and Quality, A+ Investor also provides grades for Momentum and Estimate Revisions.

Roblox (NYSE:RBLX) Price Target and Consensus Rating

Overall, stock has a Value Grade of , Growth Grade of and Quality Grade of . Whether this is a good investment depends on your goals and risk tolerance.

Analyst Price Target Consensus

MarketBeat calculates consensus analyst ratings for stocks using the most recent rating from each Wall Street analyst that has rated a stock within the last twelve months. Each analyst's rating is normalized to a standardized rating score of 1 (sell), 2 (hold), 3 (buy) or 4 (strong buy).

Analyst Ratings By Month

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Average Share Price and Price Target by Month

The chart below shows how a company's ratings by analysts have changed over time. Each bar represents the previous year of ratings for that month. Within each bar, the sell ratings are shown in red, the hold ratings are shown in yellow, the buy ratings are shown in green, and the strong buy ratings are shown in dark green.

Roblox (NYSE:RBLX) Analyst Ratings Frequently Asked Questions

The chart below shows how a company's share price and consensus price target have changed over time. The dark blue line represents the company's actual price. The lighter blue line represents the stock's consensus price target.

NYSE: RBLX

According to the issued ratings of 13 analysts in the last year, the consensus rating for Roblox stock is Buy based on the current 1 sell rating, 3 hold ratings and 9 buy ratings for RBLX. The average twelve-month price target for Roblox is $90.75 with a high price target of $125.00 and a low price target of $45.00.

The tween gaming platform remains a polarizing stock

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What does Roblox do?

Roblox ( RBLX -3.04% ) has been a volatile stock since its direct listing in March. The gaming company's stock started trading at $64.50 per share, far above its reference price of $45, and briefly topped $100 in June.

How fast is Roblox growing?

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.

Roblox's core growth metrics are peaking

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:

Can Roblox overcome the looming slowdown?

During the second quarter, Roblox's daily active users (DAUs) rose 29% year-over-year to 43.2 million, its average bookings per DAU (ABPDAU) grew slightly to $15.41, and its average hours engaged rose 13% to 9.7 billion. But on a sequential basis, Roblox's ABPDAU dipped as its average hours engaged stayed flat:

Is Roblox's stock worth buying?

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 might eventually evolve into the YouTube of kid-created games, but its stock could remain volatile as it faces tough post-pandemic comparisons, concerns about its widening losses, and the risks regarding its dependence on tween creators and gamers.

What is a Zacks portfolio tracker?

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.

About Roblox

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.

Roblox (NYSE:RBLX) Frequently Asked Questions

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 that allows developers and creators to build, publish, and operate 3D experiences and other content.

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