Just remember, Roblox is a gaming company, but investing isn't just a game. If Roblox's management makes an unrealistic promise, that's not a good look for the company. So, let's take off our 3D metaverse goggles and take a direct look at Roblox's faulty financials. Roblox's Big Bookings Promise While some companies focus heavily on their revenue/sales, Roblox tends to emphasize its bookings. For Roblox, bookings is related to sales, as it's a measure of the company's conversion of on-platform virtual curre ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Roblox (RBLX) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Roblox currently has an average brokerage recommendation (ABR) ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roblox. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

JasonDoiy I have previously covered Roblox stock with a Buy thesis, back in February this year - see here. Since the article has been published, RBLX shares are down about 30%, while the S&P 500 has appreciated 5%. Roblox Reports Solid Q1 Results RBLX announced its results for the first quarter of 2024 and reported an overall solid performance, with both bookings and profitability approximately in line with consensus estimates: During the period from January to end of March, the San Mateo based gaming/ soci ...

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions an ...

Can profit margins expand fast enough to support this growth stock's lofty valuation? Investors looking for bargains might want to turn their attention to Roblox (RBLX 2.26%). Shares of the company behind the user-centric gaming platform fell by about 20% after management relayed some news that disappointed most Wall Street analysts. Bucking the trend, BMO Capital's Brian Pitz expects strong profit growth in the quarters ahead, despite a lowered outlook for quarterly bookings for the rest of 2024. Pitz rece ...

Roblox's biggest problem isn't with credibility, but with valuation. Roblox (RBLX -1.56%) reported Q1 earnings last week, and the news was... disappointing. After beating expectations for both sales and earnings, the online gaming platform proceeded to warn that future growth in sales and "bookings" (essentially, sales of Robux virtual currency to users) won't be as fast as many investors hoped. That's not the kind of news that growth investors like to hear, and Roblox stock sold off hard after earnings -- ...

The stock for this gaming platform is down over 30% year to date.Shares of Roblox (RBLX 3.39%) sank after its first-quarter results, despite the virtual gaming platform raising its full-year revenue outlook. The stock is now trading down over 30% year to date.So why is Roblox's stock getting crushed?Let's examine the company's quarterly results to find out why, and whether now is a good opportunity to buy the stock.Revenue versus bookingsThe main culprit behind the collapse in Roblox stock was that while it ...

This stock plunged after disappointing guidance, but don't ignore its long-term potential.Metaverse gaming platform Roblox (RBLX -22.06%) posted generally strong first-quarter numbers, with bookings up by 19% year over year and a narrower-than-expected net loss. The company produced its highest free cash flow in a single quarter ever.Roblox's user base continues to grow, with 77.7 million daily active users (DAUs) at the end of the first quarter -- up by more than 6 million since the end of 2023. Currently, ...

The thing about shiny new things, is that they are often dulled by repeated play.Roblox, the virtual world gaming platform, is finding that out the hard way as its muted second quarter guidance — released Thursday morning (May 9) — has since sent the company’s shares spiraling more than 20% as of reporting. “Our teams have been hard at work identifying opportunities to drive DAUs (daily active users), Hours, and bookings growth rates back to 20% year-over-year. We began experimenting with changes in our AI- ...