is roblox stock a buy

by Saul Rolfson 10 min read
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The stock is down 79% off its high as investors worry about declining customer engagement. Still, the metaverse pioneer could turn things around for investors in the coming weeks. Roblox is scheduled to report 2022 first-quarter earnings next week, and that could be the catalyst that boosts the share price.May 8, 2022

Full Answer

Is Roblox stock a good investment?

Since the Roblox IPO, the stock is up more than 60% and the company’s value is more than $40 billion. And now Wall Street analysts are pushing the interest even further after Stifel’s rating was released. In the long run, Roblox is looking more like a safe play for investors. But there are risks to consider. Roblox put together a strong 2020 which will unlikely be comparable to 2021.

Should you buy Roblox stock right now?

They just revealed what they believe are the ten best stocks for investors to buy right now... and Roblox Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys. Rich Smith owns shares of Roblox Corporation. The Motley Fool owns shares of and recommends Roblox Corporation.

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 stocks a good buy?

The company is a great buy as young gamers spend more time on the platform. But even after falling from the $141.60 high set in November 2021, the stock could get cheaper. The market will remain irrational longer than some will expect. Stockholders will need to wait out the storm and keep their long position in Roblox.

Is Roblox a Buy Sell or Hold?

Roblox has received a consensus rating of Hold. The company's average rating score is 2.38, and is based on 8 buy ratings, 6 hold ratings, and 2 sell ratings.

Is Roblox a good growth stock?

Summary. Roblox is down an astonishing 75% from all time highs. The company continues to report solid revenue growth, but investors should focus on decelerating bookings growth. The company is generating free cash flow, but investors should not count on a return to former multiples.

Is it too late to buy Roblox stock?

It's not too late to buy Roblox, but more price-conscious investors may want to keep it on their watchlist to see if market volatility brings a more attractive entry point.

What is Roblox target price?

Stock Price TargetHigh$61.00Low$21.00Average$37.63Current Price$27.76

What is the prediction for Roblox stock?

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. The median estimate represents a +30.04% increase from the last price of 29.99.

Will Roblox stock recover?

A rebound in RBLX's shares is likely to happen in 2H 2022, when the company's bookings growth accelerate again benefiting from an easier base for comparison. But a recovery to the $70 price level is quite challenging considering the implied valuation multiples and the weakness in Roblox's US & Canada region.

Does Roblox have a future?

Roblox revenue growth peaked in Q1 2021 at 140%. Over the course of 2021, as the tailwinds from the pandemic began to die down, traders and short-term speculators increasingly began selling stocks that benefitted from the pandemic and the selling eventually caught up to Roblox in late 2021 moving into 2022.

Will Roblox go up?

Roblox finished 2021 with $1.9 billion in revenue, a terrific 108% jump over the prior year. The company also reported a 40% year-over-year increase in daily active users (DAUs) to 45.5 million. User engagement was also strong, as evident from a 35% year-over-year increase in hours engaged to 41.4 billion.

Why did Roblox stock spike?

This heady growth was driven by a 31% rise in average daily active users (DAUs) to 47.3 million, and a 28% increase in hours engaged to 11.2 billion.

Why is Roblox stock dropping?

The stock had fallen 77% year to date as investors soured on high-growth tech stocks. The company, which offers a platform that allows users to make games and interact in virtual worlds, said daily active users hit 54.1 million, up 28% from the first quarter of 2021.

How much debt is Roblox?

Roblox long term debt for 2021 was $0.988B, a INF% increase from 2020. Roblox long term debt for 2020 was $0B, a NAN% decline from 2019. Roblox long term debt for 2019 was $0B, a NAN% decline from 2018....Compare RBLX With Other Stocks.Roblox Annual Long Term Debt (Millions of US $)2021$9882020$2019$2018$

NYSE: RBLX

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This pandemic-era darling just disappointed investors

Roblox 's ( RBLX -5.67% ) stock dropped 15% during after-hours trading on Feb. 15 after it posted its fourth-quarter earnings report.

Is Roblox losing its momentum?

Roblox is a divisive stock. The bulls believe its gaming platform -- which enables its users to create, share, and monetize simple block-based games without any coding knowledge -- will expand beyond its core tween audience and lock more brands into its evolving " metaverse " world.

Roblox's other growth metrics look wobbly

Roblox's daily active users (DAUs) grew 33% year-over-year to 49.5 million in the fourth quarter, marking an acceleration from the previous quarter. That acceleration was impressive, considering that it temporarily lost more than three million DAUs during a service outage last October.

There's still no path toward profitability

As Roblox's engagement and monetization rates decelerate, its losses continue to widen. Its net loss widened from $71 million in 2019 to $253 million in 2020, then widened to a whopping $492 million in 2021.

Avoid Roblox for now

Roblox's decelerating bookings growth, sluggish monetization rates, widening losses, rising leverage, and ongoing dilution make it a tough stock to recommend as rising interest rates rattle the market.

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Signals & Forecast

Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development.

Support, Risk & Stop-loss

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

Is Roblox Corporation stock A Buy?

Roblox Corporation holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.

Insiders are negative selling more shares than they are buying in Roblox Corporation

In the last 100 trades there were 1.27 million shares bought and 2.04 million shares sold. The last trade was done 16 days ago by Reinstra Mark who sold 12.7 thousand shares. In general the insiders are selling more stocks than they buy. There can be a variety of reasons for this, but in general it can be considered as a negative signal.

Golden Star Signal

This unique signal uses moving averages and adds special requirements that convert the very good Golden Cross into a Golden Star. This signal is rare and, in most cases, gives substantial returns. From 10 000+ stocks usually only a few will trigger a Golden Star Signal per day!

Top Fintech Company

featured in The Global Fintech Index 2020 as the top Fintech company of the country.

Roblox

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About RBLX

Roblox Corp. engages in the provision of online gaming services. Its platform consists of Roblox Client, Roblox Studio, and Roblox Cloud. Roblox Client is an application that allows users to explore 3D digital worlds.

Rating

What analysts recommend for this stock, on a scale from 1 (buy) to 5 (sell).

The mobile gaming company has produced some impressive results recently

Recent IPO Roblox ( RBLX -8.75% ) is one of the most interesting mobile gaming companies in the market, with a platform that is wildly popular with younger users. In this Fool Live video clip, recorded on Nov. 8, Fool.com contributors Matt Frankel and Danny Vena discuss Roblox's business and whether it might be worth a look right now.

NYSE: RBLX

Matt Frankel: This is Roblox, ticker symbol RBLX. I just think this is an interesting company. I can't believe Danny said he's watching Rivian ( RIVN 2.52% ), but he's not necessarily going to buy it. Roblox is like that with me. It's a company that I'm watching closely. I think it has a lot of potential. It's a really interesting company.

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