why did roblox stock drop

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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 ...

Is Roblox stock poised to rally soon?

So there is sort of a pause in that rally," Fiona Cincotta ... flat as a pancake after gains in travel-related and healthcare stocks offset commodity-linked weakness. Positive headlines on ...

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.

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 Roblox stock worth buying?

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 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 61.00 and a low estimate of 21.00.

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.

What will Roblox look like in 2030?

Roblox went public via a direct listing this March with a reference price of $45. The stock opened at $64.50, and currently trades in the high $80s -- which gives it a market capitalization of nearly $50 billion. For Roblox to become a $1 trillion company by 2030, the stock would need to rise about 20 times.

How high will RBLX go?

However, investors shouldn't forget that Roblox's current pace of growth remains quite solid. Assuming the company maintains the $200 million revenue run rate that it has clocked in the first two months of 2022, it could end 2022 with $2.4 billion in revenue.

What is Nio price target?

NIO Inc (NYSE:NIO) The 31 analysts offering 12-month price forecasts for NIO Inc have a median target of 30.43, with a high estimate of 66.96 and a low estimate of 21.98.

Is Roblox a sell?

Roblox (RBLX 5.63%) has gained millions of daily active users, and revenue has exploded. The stock responded to the business's success, rising to over $120 per share at the peak. However, the stock has fallen sharply off the highs and is now trading at $50.

How does Roblox make money?

Roblox earns about 48.9% of Robux revenue as profit. The other 51% is divided between the game developer, the App Store, and payment processing fees. Roblox makes up 35% of its revenue via Robux purchases from Apple's App Store and 19% of its revenue via purchases from the Google Play store.

NYSE: RBLX

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Roblox's long-term prospects look promising, but there are some short-term concerns

Online game platform and game creation system Roblox ( RBLX -8.75% ) has performed well since its direct listing last year -- its shares began trading at around $60 and subsequently more than doubled over the next few months to hit a high of $141.60.

A solid quarterly result but with weaker growth

The COVID-19 pandemic has been disrupting industries of all kinds, especially airlines and hospitality, for almost two years now. For some companies though, COVID-19 has actually helped accelerate growth.

NYSE: RBLX

While solid, these numbers were weaker when compared to the previous quarters. For perspective, revenue grew 127% and 140%, respectively, in the prior two quarters. Besides, Roblox reported that total engagement hours in November 2021 -- while up 32% year over year -- came in weaker than the 4 billion hours clocked in August 2021.

Investors are moving away from growth stocks

The last two years were a great time to own growth stocks, with highflyers like Tesla rising more than tenfold between 2020 and 2021. The rising tide, however, has been lowered toward the second half of last year.

What's next for Roblox

Overall, Roblox's weaker growth and the change in investor sentiments toward high growth (but loss-making stocks) likely caused its share price to fall. Still, the company's long-term prospects remain largely intact.

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Is Roblox's growth slowing down?

But with vaccinations ramping up and people returning to more outdoor activities, Roblox's growth appears to be slowing. Worse still, decelerating growth is arguably not reflected in Roblox's stock price. Even after today's losses, its shares are currently trading for roughly 18 times analysts' revenue estimates for 2021.

Is Roblox growing?

But with vaccinations ramping up and people returning to more outdoor activities, Roblox's growth appears to be slowing.

About Roblox

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.

Roblox (NYSE:RBLX) Frequently Asked Questions

13 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Roblox in the last year. There are currently 1 sell rating, 3 hold ratings and 9 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "buy" Roblox stock. View analyst ratings for Roblox or view top-rated stocks.