Twitter

Link your Twitter Account to Market Wire News


When you linking your Twitter Account Market Wire News Trending Stocks news and your Portfolio Stocks News will automatically tweet from your Twitter account.


Be alerted of any news about your stocks and see what other stocks are trending.



home / news releases / roblox erosion in shareholder equity may negate its


RBLX - Roblox: Erosion In Shareholder Equity May Negate Its High Growth Potential

2024-03-13 16:00:00 ET

Summary

  • RBLX is still not a Buy, despite the double beat FQ4'23 earnings call, promising FY2024 guidance, and projected top-line growth at +20% through 2027.
  • Much of our bearish sentiments are attributed to the management's over reliance on stock-based compensation and share dilution.
  • Despite the relatively healthy balance sheet and expanding free cash flow generation, shareholder equity continues to be eroded, negating RBLX's high growth potential.
  • Anyone hoping for generative AI, social media, and advertising tailwinds must also be very patient, since these are still early days.
  • Combined with the eye-watering FWD valuations, RBLX is overvalued here and is likely to be overvalued moving forward.

We previously covered Roblox Corporation ( RBLX ) in January 2023, discussing why it remained a speculative stock, with the management's focus on delivering high growth implying its inability to generate positive net income profitability....

For further details see:

Roblox: Erosion In Shareholder Equity May Negate Its High Growth Potential
Stock Information

Company Name: Roblox Corporation Class A
Stock Symbol: RBLX
Market: NYSE

Menu

RBLX RBLX Quote RBLX Short RBLX News RBLX Articles RBLX Message Board
Get RBLX Alerts

News, Short Squeeze, Breakout and More Instantly...