IB Net Payout Yields Model

Invest like me - only at Covestor.com

Roblox: Misunderstood Story (Rating Upgrade)

By -

Update - Jan. 13, 2026

Roblox ended up 10% today after BMO reiterated a $155 PT on the expectations of strong bookings growth in 2026.

-The shares rebounded sharply after closing Monday at $76.72, trading around $83 midday on heavy volume of over 13 million shares, following support at $71-$75 and bullish patterns like cup-and-handle formations. Traders highlighted the momentum, with one joking about nailing the exact 10% move from an interesting chart last week. A key boost came from the new game 'Escape Tsunami for Brainrots!,' which hit top 5 by concurrent users over the weekend with 40 million-plus visits, drawing praise from BMO Capital for signaling strong bookings growth into 2026.

Finviz Chart

  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »

Original article posted on Dec. 17

  • Roblox delivered explosive engagement and bookings growth, yet the stock has plunged nearly 50% from recent highs.
  • RBLX's GAAP losses obscure strong cash flow generation, as bookings surged 70% to $1.92 billion in Q3'25 and free cash flow is set to top $1.15 billion in 2025.
  • The market fears rising developer fees and margin compression due to how accounting requires the reporting of GAAP profits.
  • The stock is cheap now, trading at 7.5x '26 bookings, but Roblox is still looking for a bottom and could trade much lower.
Roblox Corporation (RBLX) recently reported a remarkable quarter and now the stock is collapsing. The stock market has a major ability to discount past growth while ignoring the mobile gaming platform that has years of growth ahead. My investment thesis is back to ultra-Bullish on the stock, especially after the nearly 50% dip following a blowout quarter.


Read the full article on Seeking Alpha. 

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

Comments

Post a Comment

Popular posts from this blog

Stat of the Day: VXO hits 45 again

By -
Not hardly a week removed from hitting 45 on 9/18/08 and the market is back to this extreme level. Usually hitting the 40 level has historically been a huge buy signal for at least the next 4-6 months. Below are the times that 40 has been hit and only 2 times did it exceed 45 in the prior 20+ years until this month. Guess time will tell if this one leads to a huge rally. Date High 10/19/1987 152.48 8/24/1990 40.01 10/27/1997 40.04 8/27/1998 41.46 4/14/2000 41.53 3/22/2001 41.99 9/17/2001 47.7 7/11/2002 41.64 9/18/2008 45.81
Read more

Nextdoor: Next Step Up

By -
Image
Update - Feb. 28, 2025 Nextdoor reported another strong quarter.  Q4 Revenue of $65.23M (+17.4% Y/Y)  beats by $2.11M . Adjusted EBITDA was $3.0 million, compared to a $14.0 million loss in the year-ago period, reflecting 30 percentage points of year-over-year margin improvement. The social media company guided to weak Q1 results due to going full speed ahead with the NEXT UI updates. This is great news for  investors, but the stock is down some 30% due to the markets short-term focus.  The stock trades at near cash value of $427 million.  Originally posted on Nov. 8 Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Nextdoor has achieved a significant turnaround under the return of founding CEO Nirav Tolia, with 17% revenue growth and record WAUs. The company nearly eliminated losses, reporting a Q3 adjusted EBITDA loss of just $1 million, and expects to be cas...
Read more

Hims & Hers Health: The Market Is Likely Wrong

By -
Image
Updated - Feb. 21, 2025 Hims & Hers Health isn't reliant on GLP-1 shortages. Not sure why news reports keep making this false claim, but the stock is down 20% today on the FDA ending the semagultide shortage status.  -The U.S. FDA announced Friday that it would refrain from penalizing makers of compounded versions of Novo Nordisk’s (NVO) weight loss/obesity drugs for two more months as supply conditions for the GLP-1s improve after an official end to their shortage. -Earlier in the day, the agency declared that the nationwide shortage of the highly popular GLP-1s, collectively known as semaglutide, is resolved after nearly three years. -“The FDA confirmed with the drug’s manufacturer that their stated product availability and manufacturing capacity can meet the present and projected national demand,” the regulator said. -Hims & Hers (NYSE:HIMS), which made compounded versions of semaglutide amid the shortage, lost billions of dollars in market cap in reaction as the telehea...
Read more