will roblox stock recover

In summary, the potential rebound in Roblox's share price will be driven by an acceleration of bookings growth, further progress in aging up, and foreign markets expansion. But the extent of Roblox's stock price rebound might not be as significant as investors would have hoped for, which I discuss in the next section.

Full Answer

What happened to Roblox’s stock price?

Additionally, the Roblox stock price has retreated as the earlier excitement about the metaverse evaporates. Indeed, the most metaverse cryptocurrencies like Axie Infinity, Decentraland, and The Sandbox have all crashed by more than 60% from their highest levels on record.

Is Roblox a good stock to invest in?

Roblox has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock. Roblox has received 33 “outperform” votes. (Add your “outperform” vote.) Roblox has received 11 “underperform” votes. (Add your “underperform” vote.) Roblox has received 75.00% “outperform” votes from our community.

Will Roblox turn profitable this year?

Wall Street expects Roblox to turn profitable this year as it gradually narrows its losses, then grow its earnings 3% in fiscal 2022. But that outlook could still be too optimistic, since it could be tough for Roblox to reduce the exchange rate for its developer exchange fees without alienating developers.

What are analysts'forecasts for Roblox's stock?

Their forecasts range from $78.00 to $103.00. On average, they anticipate Roblox's stock price to reach $86.00 in the next year. This suggests that the stock has a possible downside of 7.0%. View analysts' price targets for Roblox or view top-rated stocks among Wall Street analysts.

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.

Why is Roblox stock falling?

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.

Is Roblox a good stock to buy now?

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 2.31, and is based on 7 buy ratings, 7 hold ratings, and 2 sell ratings.

Is Roblox losing money 2022?

In the first quarter of 2022, gaming company Roblox Corporation reported a consolidated net loss of over 162 million U.S. dollars.

Is Roblox stock crashing?

Roblox Stock Crashes 25% After Lackluster Earnings.

Is Roblox profitable 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.

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.

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.

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.

What is Roblox target price?

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

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.

Should I buy or sell Roblox stock right now?

16 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Roblox in the last year. There are currently 2 sell ratings, 6 hold ratin...

What is Roblox's stock price forecast for 2022?

16 equities research analysts have issued 1-year target prices for Roblox's shares. Their forecasts range from $21.00 to $125.00. On average, they...

How has Roblox's stock performed in 2022?

Roblox's stock was trading at $103.16 at the beginning of the year. Since then, RBLX stock has decreased by 73.1% and is now trading at $27.76. Vi...

When is Roblox's next earnings date?

Roblox is scheduled to release its next quarterly earnings announcement on Monday, August 15th 2022. View our earnings forecast for Roblox .

How were Roblox's earnings last quarter?

Roblox Co. (NYSE:RBLX) released its earnings results on Tuesday, May, 10th. The company reported ($0.27) EPS for the quarter, missing analysts' con...

Who are Roblox's key executives?

Roblox's management team includes the following people: Mr. David Baszucki , Founder, Pres, CEO & Chairman (Age 57, Pay $601.39k) ( LinkedIn Pro...

What is David Baszucki's approval rating as Roblox's CEO?

144 employees have rated Roblox CEO David Baszucki on Glassdoor.com . David Baszucki has an approval rating of 98% among Roblox's employees. This...

Who are some of Roblox's key competitors?

Some companies that are related to Roblox include Activision Blizzard (ATVI) , VMware (VMW) , Dassault Systèmes (DASTY) , Synopsys (SNPS) , Sh...

When did Roblox IPO?

(RBLX) raised $0 in an IPO on Wednesday, March 10th 2021. The company issued 198,900,000 shares at $0.00 per share. Goldman Sachs and Morgan Stanle...

Roblox stock analysis: Price drivers and technical view

The Roblox chart shows the stock has been on a sharp downtrend since it hit its November all-time high despite nailing the market’s estimates for the firm’s revenues for the third quarter of the 2021 fiscal year.

Increasing competition in the race toward becoming the go-to metaverse platform

Other companies aside from Roblox have dipped their toes into the metaverse industry including the social-media giant Facebook Inc., which was rebranded as Meta Platforms .

Roblox stock fundamental analysis: Latest earnings

Roblox reported its financial results covering the third quarter of its 2021 fiscal year in November last year.

Roblox stock forecast: Analyst sentiment

According to data compiled by MarketBeat as of 10 January, the consensus recommendation for Roblox was bullish with a total of 11 out of 14 analysts covering the stock rating it as ‘buy’. The two analysts gave RBLX a ‘hold’ rating, while another one rated it as ‘sell’.

Roblox stock price prediction: Targets for 2022, 2025 and 2027

Commenting on Roblox stock future, Mikhail Karkhalev, an analyst at Capital.com, said:

When does Roblox lock up expire?

Roblox's lock-up period expires on Monday, September 6th. Roblox had issued 198,917,280 shares in its public offering on March 10th. The total size of the offering was $8,951,277,600 based on an initial share price of $45.00.

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 that allows developers and creators to build, publish, and operate 3D experiences and other content. The company also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform. It serves customers in the United States, Canada, Europe, the Asia-Pacific, and internationally. Roblox Corporation was incorporated in 2004 and is based in San Mateo, California.

What is the ticker symbol for Roblox?

Roblox trades on the New York Stock Exchange (NYSE) under the ticker symbol "RBLX."

Does Roblox pay dividends?

Roblox does not currently pay a dividend.

Why do people buy Robux?

Players buy Robux to pay creators, who can then covert the currency back to U.S. dollars at a set exchange rate. This self-sufficient cycle differentiates Roblox from professional game development engines like Unity Software, and shares more qualities with Microsoft 's Minecraft.

What does YOY mean in Roblox?

Data source: Roblox. YOY = Year over year.

Is Roblox safe for tweens?

However, Roblox's overwhelming dependence on tween users is still risky. It must constantly refine its safety measures to protect those users from online predators, and some of those players might eventually move on to other games as they grow older. Its content creators could also graduate to more complex game engines like Unity, or simply quit if Roblox reduces Robux's real-world value.

Is Roblox a self-sufficient platform?

A self-sufficient gaming platform for tweens. Roblox lets people create video games with a simple block-based system. The simplicity of its platform, which doesn't require any coding experience, drives its growth among tween users. More than half of its daily active users (DAUs) are currently under the age of 13.

Can you share your Roblox game with other people?

Roblox's creators can share their games with other users, promote them on streaming platforms like Amazon 's Twitch, and monetize them with in-game features or cosmetic upgrades for avatars. Roblox enables these transactions with an in-game currency called Robux.

Is Roblox profitable in 2022?

Wall Street expects Roblox to turn profitable this year as it gradually narrows its losses, then grow its earnings 3% in fiscal 2022. But that outlook could still be too optimistic, since it could be tough for Roblox to reduce the exchange rate for its developer exchange fees without alienating developers.

What happened

Shares of Roblox ( RBLX -8.68% ) were down 18.4% week to date through Thursday's close, according to data provided by S&P Global Market Intelligence. In its latest fourth-quarter report, the gaming platform posted decelerating growth in key operating metrics and issued a weak outlook for the year ahead.

So what

The more important metric that analysts watch is bookings, a non-GAAP (adjusted) measure of revenue. Growth in this metric has decelerated significantly over the last four quarters, from 161% in the year-ago quarter to just 20% in the fourth quarter.

Now what

These are likely just near-term speed bumps, as Roblox laps spikes in demand a year ago. While bookings growth is slowing, it's important to remember that time spent on the platform is still above 10 billion hours, which is close to record highs for the company. Overall, the collapse in the share price can be blamed on valuation concerns.