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Roblox (RBLX) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Roblox (RBLX - Free Report) ending at $36.44, denoting a -0.87% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.23%.

The the stock of online gaming platform has fallen by 5.43% in the past month, lagging the Consumer Discretionary sector's loss of 1.15% and the S&P 500's gain of 1.5%.

Market participants will be closely following the financial results of Roblox in its upcoming release. The company is expected to report EPS of -$0.54, down 22.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $930.43 million, up 20.24% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$2.10 per share and a revenue of $4.23 billion, indicating changes of -12.3% and +20.08%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.84% lower. Roblox presently features a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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