is roblox stock good

by Johnathan Schneider 4 min read
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The Verdict on RBLX Stock Given its lack of profitability and its financial metrics which are lackluster overall, Roblox is still a speculative stock. If you want to own it, you have to have faith in the company’s long-term concept and vision. In other words, you have to believe that the game will succeed despite its lackluster graphics.

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.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?

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 still a good stock?

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. 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.

Is Roblox stock a good 2022 buy?

NYSE: RBLX Management had earlier noted that it expected the declines could reverse in the middle of 2022. If Roblox updates investors and informs them that trends have turned upward, it could be an excellent time to buy the stock.

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.

Why is Roblox stock dropping?

Roblox RBLX –14.57% 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 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.

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.

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.

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.

What is Roblox stock prediction?

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.

Is Roblox a buy now?

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 losing money?

In the first quarter of 2022, gaming company Roblox Corporation reported a consolidated net loss of over 162 million U.S. dollars. This figure is an improvement from the corresponding quarter of the previous year, when Roblox generated a net loss of over 136 million U.S. dollars.

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.

Investing in Stock

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

Latest () Stock News

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

Grading Stock

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.

Other Grades

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

Stock: Bottom Line

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.

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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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 (NYSE:RBLX) Price Target and Consensus Rating

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 Price Target Consensus

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Analyst Ratings 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.

Average Share Price and Price Target by Month

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.

Roblox (NYSE:RBLX) Analyst Ratings Frequently Asked Questions

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.

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.

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 safe for kids?

RBLX also has a subscription service that lets users buy discounted games and access special features. What really sets RBLX apart is that it's a safe plaec for kids online; more than half the users are under age 13 and the company strives to keep it safe ( i.e. answering each complaint under 10 minutes).

Is RBLX profitable?

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. Show full opinion Hide full opinion. Roblox (RBLX-N) May 24, 2021.

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.

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