Roblox Stock ( NYSE:RBLX )
Following a downgrade from Morgan Stanley analyst Matthew Cost on Thursday, shares of video game platform business Roblox ( NYSE:RBLX ) plummeted almost 8%. Cost said that any reacceleration in bookings appeared to be priced into the Roblox stock price.
After noting that investors were anticipating excellent results from the firm, as shown by its recently announced December data, Cost downgraded Roblox stock to underweight from equal-weight and set a price objective of $24 per share.
Cost said he was keeping a level head on Roblox ( NYSE:RBLX ) heading into 2023 because he expected “a series of monthly metric releases indicating accelerated bookings growth” due to strong Christmas seasonality and easy comparables through the middle of the year.
Roblox ( NYSE:RBLX ) had far better-than-expected earnings in December, and Cost said the company’s stock has since risen 28% this year because “we think the [first-half of 2023] reacceleration is now fully priced.”
For the second half of the year, Cost predicts weaker growth for Roblox (RBLX) due to tougher comparisons beginning in May and a “strong” decline beginning in the third quarter. When asked about Roblox’s ( NYSE:RBLX ) growth rate for the year, Cost said it was probable that it would be around 5%.
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