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
Roblox remains Underweight at Morgan Stanley following in-line February metrics
© Reuters Roblox (RBLX) remains Underweight at Morgan Stanley following in-line February metrics
By Michael Elkins
Morgan Stanley reiterated an Underweight rating and $26.00 price target on Roblox Corp (NYSE:RBLX) after the video game company reported February metrics that were in line with expectations.
Roblox’s monthly bookings/DAUs came in 1%/2% ahead of estimates, while hours came in 7% below prior estimates. February marks the second consecutive month of ~20% y/y bookings growth.
Analysts wrote in a note, “Given RBLX's in-line performance in February, we leave our forward estimates unchanged, as we maintain our cautious view on the growth trajectory through the year.”
“…we continue to expect the current reacceleration to give way to a 2H deceleration, as compares will toughen considerably beginning in June...and ultimately, we expect RBLX to exit the year at a bookings growth rate of just 6% y/y (vs.20% in February). On the immersive advertising front, while the market remains focused on ads as a key growth driver/incremental revenue stream in ’23 and '24, we continue to expect that RBLX will roll this out at a modest pace, resulting in limited financial benefits in the near-term. Finally on the AI front, we see significant long-term potential for AI-driven content creation tools, but believe that it is still very early days as the company experiments with potential new offerings,” wrote the analysts.
Morgan Stanley also notes that comps will continue to ease through May before becoming ~1,900bp harder in June. In addition to the release of monthly metrics, RBLX disclosed that on 3/13, it moved all ~$150 million of its cash and securities that were held at Silicon Valley Bank to another financial institution.
Shares of RBLX are down 0.26% in mid-day trading on Thursday.
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.