Back to top

Image: Bigstock

Why Roblox (RBLX) Dipped More Than Broader Market Today

Read MoreHide Full Article

Roblox (RBLX - Free Report) closed at $38.68 in the latest trading session, marking a -1.7% move from the prior day. This change lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.59%.

The online gaming platform's stock has dropped by 12.03% in the past month, falling short of the Consumer Discretionary sector's loss of 2.54% and the S&P 500's gain of 1.2%.

The investment community will be paying close attention to the earnings performance of Roblox in its upcoming release. The company is slated to reveal its earnings on February 7, 2024. The company is expected to report EPS of -$0.57, down 18.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.07 billion, up 19.47% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Roblox. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. As of now, Roblox holds a Zacks Rank of #4 (Sell).

The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Roblox Corporation (RBLX) - free report >>

Published in