Published - August 11th, 2023 @ 09:45 AM (GMT+2)
Roblox Corporation (NYSE:RBLX), a leading online entertainment platform, has been in the spotlight with mixed opinions from analysts. D.A. Davidson analyst Franco Granda initiated a Buy rating on Roblox, with a focus on stocks like Unity Software and Playtika Holding. On the same day, Goldman Sachs reiterated a Sell rating on Roblox. Truist Financial analyst Matthew Thornton maintained a Hold rating on Roblox with a price target of $45.00.
Market Cap and Insider Activity
Roblox's market cap is currently $18.69B, with a P/E ratio of -17.08. Corporate insider sentiment is negative on the stock, indicating an increase in insiders selling their shares of RBLX in relation to earlier this year.
Roblox's Q2 Earnings and Stock Price History
Roblox shares crashed nearly 22% after reporting earnings below analysts' expectations. The company lost 46 cents per share on bookings of $781 million for the June-ended quarter. Analysts were expecting $785 million and $46 million in adjusted earnings before interest, taxes, depreciation, and amortization.
The Roblox stock initial public offering (IPO) occurred on March 10, 2021, with a suggested price of 45 per share. The stock closed at 69.50 on the IPO day, more than 54% above the IPO price. In May 2022, Roblox stock bottomed out at 21.65, and amid Wednesday's collapse, the previous buy point is no longer valid.
Roblox's Role in the Emerging Metaverse
Roblox is considered a play on the emerging metaverse, a next-generation version of the internet. The platform allows users to create their own games, and developers receive 30% of the proceeds generated from a game. The metaverse is described as a persistent, shared, 3D virtual environment, encompassing technologies like virtual reality and augmented reality.
Conclusion
Roblox stock is one of the metaverse stocks in the stock market rally. The company's lack of earnings growth should be a concern for growth investors. Roblox Corporation's recent performance has drawn mixed reactions from analysts. With a significant stock crash after Q2 earnings and a role in the emerging metaverse, the company presents both opportunities and challenges.
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