2024-05-10 08:30:14 ET
Summary
- Roblox's bombshell guidance for 2024 stunned investors as RBLX stock plunged more than 20%.
- Roblox's lowered bookings outlook intensified concerns about the sustainability of its growth thesis.
- Roblox's long-term growth story hasn't collapsed but materially weakened.
- Management must regain the market's confidence in its execution and guidance to deserve a valuation re-rating.
- Being bearish on RBLX seems too harsh, but staying away still seems the wiser choice. I explain the key levels to monitor.
Roblox Offered Disappointing Guidance
Roblox Corporation ( RBLX ) investors received a harsh dose of reality check yesterday as the immersive gaming platform posted its first-quarter earnings scorecard. Roblox's Q1 earnings release highlighted the challenges affecting gaming-related companies as the pandemic-driven euphoria dissipated. As a result, Roblox's downward guidance revisions through 2024 indicated another potentially disappointing year, given RBLX stock's high-growth premium implied in its valuation....
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Roblox Stock: Lackluster Guidance Caused A Steep Plunge