RBLX - 1 Red Flag for Roblox Stock in 2023
2023-10-05 09:05:00 ET
Roblox (NYSE: RBLX) investors have been on a roller coaster ride in 2023. The digital entertainment specialist's stock was up over 50% several times this year, but in recent weeks, returns have tumbled to barely positive territory.
On one hand, that slump makes no sense. Roblox is seeing healthy engagement trends, and the company has a good shot at boosting the value of its platform through generative artificial intelligence (AI). Yet there's also a good reason for investors to be cautious when considering buying this growth stock.
The good news is that the business has solid momentum right now. Sure, sales growth slowed in the most recent quarter, as revenue gains decelerated to 17% in the second quarter from 24% in the prior one. But the core bookings metric is holding up well. Thanks to stable demand for virtual currency purchases, Roblox's bookings grew at over a 20% rate for the second consecutive quarter in Q2.
For further details see:
1 Red Flag for Roblox Stock in 2023