IB Net Payout Yields Model

Roblox: Washed Out

  • Roblox reported another month of weak monthly metrics, but DAUs rose 17% YoY.
  • The company continues to face declining bookings with May numbers down up to 24%, though slightly better than April.
  • The stock appears washed out after rallying twice on weak corporate news.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
In no huge surprise, Roblox (NYSE:RBLX) reported May monthly metrics and the numbers didn't impress one bit. As gamers turn to travel and leisure events, the market has known for a while now that numbers over the Summer will likely be weak. My investment thesis is turning more Bullish on the stock with the solid bounce on more weak monthly bookings totals.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - June 23

The stock was indeed washed out last week helped by Truist Securities cutting the price target to $29 and MS cutting the target to $25 last week. 

Finviz Chart


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