is roblox stock a good investment

Roblox is very popular with the world’s youth, making it an intriguing buy for investors. However, the company does face some unknowns that can affect stock value. Advice Investing in stocks comes with some risk.

Full Answer

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 ...

Are Roblox stocks doing good?

Roblox Corporation ... the RBLX stock Overweight. In the meantime, 0 analyst(s) believe the stock as Underweight and 1 think it is a Sell. Thus, investors eager to increase their holdings of the company’s stock will have an opportunity to do so as ...

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 ...

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.

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 buy or sell?

The Roblox 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.

What do analysts say about Roblox stock?

Stock Price Forecast 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 +16.59% increase from the last price of 33.45.

Will Roblox stocks 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.

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 a strong buy?

Take the market with you 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.

Can I buy Roblox on Robinhood?

Roblox stock will be on Robinhood, with the trading app set to offer investors the opportunity to purchase RBLX stock when it goes live.

How do you invest in Roblox?

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 is Nio price target?

The 30 analysts offering 12-month price forecasts for NIO Inc have a median target of 30.03, with a high estimate of 66.61 and a low estimate of 21.87. The median estimate represents a +42.31% increase from the last price of 21.10.

Why are Roblox shares falling?

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.

Why did Roblox stock go down?

Why Did Roblox Stock Drop? Besides the steep deceleration in bookings growth, RBLX stock dropped also due to declining usage. Hours engaged increased 28% year over year but declined sequentially. The above metric represents total hours engaged.

Why Roblox Stock Will Rise in 2022 - Yahoo!

When Facebook renamed itself to Meta (NASDAQ:FB) it helped lift gaming platform stocks. Roblox (NYSE:RBLX) stock will benefit from Meta’s commitment. Source: Michael Vi / Shutterstock.com It ...

Is Roblox Stock a Buy Now? | The Motley Fool

Why Roblox Stock Dropped Again on Friday | The Motley Fool

RBLX Price Target 2022, Analyst Ratings & Predictions (Roblox)

Is Roblox Stock A Buy Or Sell? What You Should Consider (NYSE:RBLX)

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.

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 is growth investing?

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures several dimensions of growth, including year-over-year increases in sales and earnings, long (er)-term historical sales and earnings growth rates and analyst-forecasted long-term earnings growth.

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.

What is A+ investor?

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs and understand your portfolio at a more detailed level.

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.

Is AAII a good investment?

Whether this is a good investment depends on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

How many people use Roblox?

Roblox currently has more than 30 million users and eight million developers. They all converge on an online social gaming platform where new games are created in a flash and spread amongst the users. Some games take off in popularity while others fall short of the mark.

When did Roblox go public?

Roblox (NYSE: RBLX) went public on March 10, 2021. In just short of a week, the gaming business was thriving on the market and grabbing a lot of attention in the process.

Is Roblox stock upside?

However, it’s clear that Roblox stock has upside potential due to its innovative network. The platform provides a highly social environment for gamers and developers that has an entertainment value unlike anything else in the industry.

Is Roblox going public?

Nevertheless, Roblox has created a unique community of gamers and developers alike. And investors are ready to benefit from this innovative company now that it’s gone public.

Is Roblox a viable investment?

What many traders saw as just another gaming company has now become a viable investment with loads of upside. In fact, Roblox has created an ever-growing network and community that will drive its monetization.

Is Roblox going to be strong in 2020?

Roblox put together a strong 2020 which will unlikely be comparable to 2021. And as the platform continues to grow, issues will arise that may be a cause for concern. One such concern already circling the platform is potential safety issues for younger users, which Stifel noted in their report.

Should You Invest in Roblox?

It’s clear that Roblox is becoming a major player within the gaming industry and investors are sure to reap the rewards. But is it smart to invest in Roblox stock now?

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.

How does Roblox stand apart from the competition?

Roblox sets itself apart from the competition by putting the game creation in the hands of its users. Gamers of all ages can participate in creating a game on the platform or pay to play games that other users created.

How much time does Roblox use in 2020?

The average amount of time people spent on the platform during the peak of summer in 2020 was 100 minutes per day. This decreased by 30% to 70 minutes per day in the first quarter of 2021.

How Much Is It Worth?

As of midday Tuesday, July 27, 2021, Roblox stock was valued at $75.97 per share.

Is Roblox popular among youth?

Roblox is popular among the youth demographic. It also offers the chance for gamers to create their own avatar, hang out with friends online, and chat with others in the Roblox community.

Is Roblox a publicly traded company?

Roblox became a publicly traded company on March 10, 2021, following an explosive year of growth during the COVID-19 pandemic. With children and families spending more time at home, the platform saw a revenue increase of 82% that reached $924 million in 2020. Roblox has more than 32 million daily users and was valued at $29.5 billion before going public.

Is Roblox safe for kids?

Because Roblox is most popular among children under the age of 18, parents have a lot of safety concerns within the platform. Roblox is a very open community where users can interact with very few restrictions. This leaves children vulnerable to online predators.

Is Roblox blocking parents?

Growing concern s among parents and people challenging the company to implement more safety measures led to Roblox enhancements to blocking capabilities for parents. While this may assuage some of these concerns, it’s unclear how these changes could affect Roblox’s stock value in the future.

So What Caught My Eye?

Growth. Growth to the left, growth to the right. This firm is growing everything, even expenses... for a good reason. More on that in a moment. Revenue generation grew 127% year over year for the second quarter, a third consecutive quarter of three digit growth. Bookings increased 34.7% from a year ago.

Some Explainin'

Roblox obviously surprised not only with the net loss, but the size of the net loss reported. From the statement of cash flows, accrued expenses soared over the first six months of the year to $74.1 million from $9.8 million for the first six months of 2020.

The Chart

Readers will see that RBLX has been subject to a series of lower highs coupled with higher lows. The shares have been forming a pennant pattern since early May, and as such are likely to produce an explosive move once the two lines come close to covering.