is roblox stock a good buy

by Rae Champlin 9 min read
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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.Apr 27, 2022

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 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 ...

Should you buy rblx stock?

Roblox Corporation finds support from accumulated volume at $73.90 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested. This stock has average movements during the day and with good trading volume, the risk is considered to be medium.

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Is investing in Roblox a good idea?

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.

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 buy stocks?

Key Data Points If Roblox updates investors and informs them that trends have turned upward, it could be an excellent time to buy the stock. After falling so steeply off its high, Roblox is trading at a price-to-free-cash-flow (P/FCF) multiple of 25, near the lowest in its history.

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 37.00, with a high estimate of 61.00 and a low estimate of 21.00. The median estimate represents a +39.78% increase from the last price of 26.47.

What is the price target for Roblox stock?

Stock Price TargetHigh$78.00Low$21.00Average$40.71Current Price$31.81

Is Roblox a buy Zack?

Zacks' proprietary data indicates that Roblox Corporation is currently rated as a Zacks Rank 3 and we are expecting an inline return from the RBLX shares relative to the market in the next few months.

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.

Is Roblox a good long term buy?

Shareholders will need more patience betting on Roblox's strong prospects. 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.

Is Roblox a good investment for 2022?

For 2022, revenues are expected to be in the range of $203 million to $207 million per month. Using an estimated revenue run rate of $200 million per month, the full year forecast is $2.4 billion. This implies a growth rate of 26% from 2021. Another, positive factor is its ability to generate positive free cash flow.

What will Roblox look like in 2030?

Roblox is enjoying outstanding revenue growth right now, which analysts expect to continue. If we conservatively assume that Roblox clocks a 30% annual revenue growth rate for the next nine years, then its revenue at the end of 2030 could increase to $20 billion.

Why is Roblox stock so high?

As of January, Roblox boasted 54.7 million daily active users. That was up by 32% from the same time in 2021. The company gained a surge of new users and engagement at the start of the pandemic when millions of kids were sent home for remote learning, and extracurricular activities were shut down.

Why are Roblox shares so low?

Investors lost confidence in Roblox (RBLX -3.64%) in the second month of 2022 after the company reported underwhelming revenue and user growth for the fourth quarter of 2021. According to data from S&P Global Market Intelligence, shares of the gaming platform dropped 21.7% in February.

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.

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 ...

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.

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 did Roblox lose?

They did produce a net loss of $253 million. But as you can tell, there's a huge difference between bookings and revenue. Roblox is receiving that cash upfront before they can count it as revenue. There's a wide gap here between net income and cash flow. On a cash flow basis, Roblox is raking it in.

How much of Roblox is spent on itself?

Every time money is spent on the platform, the developer that created that digital good or the game that the Robux is spent, they collect about 70% of the Robux, and Roblox itself keeps 30% for itself, which is a pretty standard breakdown that's available on, say, like the Apple Store or the Google Play Store.

What is the Roblox client?

There's the client, they're called the Roblox Client, which is a free application that users can download and it's how they experience the world. There's also Roblox Studio, which is a set of toolkits that developers can use to build their own games inside the Roblox universe.

What is Roblox metaverse?

It's a global platform where millions of people gather every day to create experiences and share 3D generated worlds with each other. It's essentially a metaverse. If you don't know what that is, if you've ever seen Ready Player One, when they go into the Oasis, the Oasis is a metaverse. People go in and they can do adventures with each other, they can communicate with each other, they can play games with each other, that is what Roblox is.

When was Roblox created?

The company was created in 2000. The two co-founders have been together creating 3D simulated software programs since 1989. They've been at this for a long time. Roblox the platform was officially launched in 2006, and over time, they've just grown and added on the new platform.

When did Roblox go public?

Follow him on Twitter to keep up with his latest work! Follow @TMFMathGuy. Roblox ( NYSE:RBLX) went public in early March and has performed quite well since. However, many investors who don't use Roblox's gaming platform aren't too familiar with the business.

Is Roblox a free game?

It is a free game to download, users can download the game for free and connect with their friends for free. It's monetized when people take real money and they spend it in the platform to buy Robux, that is the virtual currency inside Roblox. Users spend those Robux on digital goods.

How much is Roblox stock worth in 2021?

The Roblox Corporation stock price fell by -4.45% on the last day (Tuesday, 23rd Nov 2021) from $120.22 to $114.87. and has now fallen 3 days in a row. During the day the stock fluctuated 7.02% from a day low at $113.33 to a day high of $121.29. The price has risen in 7 of the last 10 days and is up by 4.88% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -32 million shares and in total, 26 million shares were bought and sold for approximately $2.96 billion.

What is the price target for RBLX in 2021?

On Nov 18, 2021 "Stifel Nicolaus" gave "$121.00 - $134.00" rating for RBLX. The price target was changed from $124.54 to 0.1% .

Is Roblox stock a sell signal?

The Roblox Corporation stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately $120.70. On a fall, the stock will find some support from the long-term average at approximately $89.51. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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. A sell signal was issued from a pivot top point on Friday, November 19, 2021, and so far it has fallen -14.73%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Is Bollinger Band stock high risk?

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $7.96 between high and low, or 7.02%. For the last week, the stock has had a daily average volatility of 11.62% .

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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Strong Sell candidate.

NYSE: RBLX

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This gaming company could become a good metaverse play

The Nasdaq index has fallen into correction territory over the past week, falling over 11% year to date. The Nasdaq is primarily made up of high-growth technology companies, and these types of companies have been crushed not only in 2022 but over the past three months.

A leading gaming company

Roblox has built a platform with multiple worlds where gamers can do almost anything. On the Roblox platform, gamers can build their worlds, play games, and build immersive experiences. Lil Nas X -- a famous rapper -- even created a virtual concert on Roblox where he performed in front of 33 million users.

A potential metaverse pick

Roblox -- as with many gaming stocks --could become a critical part of the metaverse in the coming years. Roblox has already built an immersive experience that many of its users see as their second home.

Is it a buy?

The company is valued at 21 times sales -- a steep multiple, especially when so many other stocks that previously traded at high multiples like this have fallen recently.

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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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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.

How many X is Zacks?

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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.

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.

Why buy Roblox?

With solid fundamentals in place, buying RBLX today looks like a bargain given where the stock price can be in the next few weeks or months.

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eToro is the leading broker for stocks, shares, and commodities trading in the UK and across the globe. It has earned its stellar reputation from several years of offering investors a safe and user-friendly environment to buy and sell assets. To buy RBLX on eToro, simply create an account and verify your identity.

What is the stock symbol for Roblox?

Roblox is a American stock, trading under the symbol RBLX-N on the New York Stock Exchange (RBLX). It is usually referred to as NYSE:RBLX or RBLX-N.

What does a high stock score mean on Roblox?

Stockchase rating for Roblox is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Why does my stock price drop?

Earnings reports or recent company news can cause the stock price to drop . Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

How many people are in Roblox?

As of December 2020, Roblox Corporation employs more than 830 people.

When will Roblox be released in 2021?

STRONG BUY. Roblox (RBLX-N) May 24, 2021. It did respectably well when it debuted 2.5 months ago, then it was flopping-and-chopping for a while. He recommended it shortly after that debut as the stock found its footing. It has a monster move last week, and popped 8% more today.

Where is Roblox made?

Roblox. Roblox 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. As of December 2020, Roblox Corporation employs more than 830 people.

Is RBLX a good stock?

He recommended it shortly after that debut as the stock found its footing. It has a monster move last week, and popped 8% more today. It now has great momentum and yes, it's that good. They offer free services, but also subscription ones. He likes this tiered approach. After Q1 results, RBLX shattered the perception that it's a Covid stock. Users generate content and Wall Street likes these companies. Thousands of live-support employees help users, which is far better than other platforms. Numbers: average daily active users was up 79% YOY and hours engaged was even higher, driven up overseas users and children. Free cash flow is over 300% YTD. They won't offer annual guidance yet, though. Use is not slowing at all. Users rose one million between March and April 2021 alone, so the reopening isn't hurting them. Kids love the platform and so do parents. Their launch in China is already beating their expectations. No, RBLX is still not profitable and still burning cash to grow their business. Also, their high cash flow is encouraging. This has a lot more room to run. Buy a small position right now to start.

How does MarketBeat calculate stock ratings?

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 consensus ratings scores are calculated using the mean average of the number of normalized sell, hold, buy and strong buy ratings from Wall Street analysts. Each stock's consensus analyst rating is derived from its calculated consensus ratings score (0-1.5 = Sell, 1.5-2.5 = Hold, 2.5-3.5 = Buy, >3.5 = Strong Buy). MarketBeat's consensus price targets are a mean average of the most recent available price targets set by each analyst that has set a price target for the stock in the last twelve months. MarketBeat's consensus ratings and consensus price targets may differ from those calculated by other firms due to differences in methodology and available data.

Does Marketbeat like Roblox?

MarketBeat users like Roblox stock more than the stock of other Consumer Discretionary companies. 75.61% of MarketBeat users gave Roblox an outperform vote while consumer discretionary companies recieve an average of 65.71% outperform votes by MarketBeat users.

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