Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
Morgan Stanley Cautious on Roblox Scale and Profitability Runway
© Reuters. Morgan Stanley Cautious on Roblox (RBLX) Scale and Profitability Runway
By Sam Boughedda
Roblox Corp (NYSE:RBLX) shares are down more than 8% Friday following its investor day and August metrics report after the close Thursday.
Following the company's investor day, a Morgan Stanley analyst reiterated an Equal-weight rating and $32 price target on the stock.
"At the '22 Investor Day, RBLX spoke to its large immersive advertising opportunity and outlined efforts to improve monetization and engagement through investments in the platform. That said, August metrics came in below us, as we remain cautious on the scale and profitability runway from here," wrote the analyst.
"August bookings/DAUs came in ~4%/~1% below our prior estimates and hours engaged came in 5% above. While August bookings decelerated -4% m/m, below investor expectations of +/- LSD % growth m/m, the company highlighted that FX (particularly USD strength vs. EUR and GBP) resulted in a ~400bp headwind to the reported y/y bookings growth rate," added the analyst. "That said, we do note that the FX headwind remains roughly the same (i.e. ~400bps) as it has since May of this year. Finally, we note that all time high DAUs and hours engaged (59.9mn DAUs, 4.7bn hours engaged), combined with weaker than expected bookings resulted in the lowest bookings per hour of '22 YTD (~$0.05 bookings per hour)."
Meanwhile, a Needham & Company analyst reiterated a Buy rating and lowered the price target on Roblox shares to $53 from $55 per share.
The analyst cut the price target based on lower-than-expected August bookings, which caused them to reduce estimates.
"The three highlights of the investor day to us were: (1)commentary on advertising, which we see as a substantial opportunity for RBLX; (2) Product enhancements, which are spinning the developer flywheel and enabling larger teams to create on RBLX; and (3) we learned that 'All ages engaging on the platform' is happening, as over 13 of the largest and fastest growing demographic are engaged," wrote the analyst.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.