Roblox ( NYSE:RBLX )
Roblox ( NYSE:RBLX ), an online gaming platform popular among children, has not been well received by investors on Wall Street. The underweight rating (i.e., sell) issued by Barclays bank upon initiation of coverage for Roblox stock yesterday saw the price down by more than 6%. However, it recovered soon, and the day ended on a high note. Up 5.7% as of 12:12 PM ET on Wednesday, Roblox stock upward trend continues .
What are the Reasons?
First, let’s look at the issues raised by Barclays. The bank claims that players aged 5 to 24 make up Roblox’s primary demography. Moreover, Roblox ( NYSE:RBLX ) has already attracted roughly 30% of this age bracket as clients in Europe and the United States. Such gamers prefer to spend more money per user on Robux virtual currency.
Barclays predicts that this will limit Roblox ( NYSE:RBLX ) ability to expand in the lucrative European and American markets, forcing the company to go to less wealthy areas of the globe for user growth. The analyst adds that this may signal “additional possible lower adjustments” to Roblox’s projected development.
What’s Next?
I agree with Barclays to the extent that this is true. Still, I worry that it’s missing something crucial, and the fact that the Roblox stock price quickly...
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