Roblox: Still On The Chopping Block
Roblox got hit by new allegations surrounding child porn on the platform. The company already faces declining user growth issues with a normalization of the user base following pandemic pull-forwards. The stock just isn't cheap enough at 9x forward sales with revenue growth targeted at only 20% and these allegations possibly further hitting user numbers. This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » As company after company falls due to normalization of user growth following pandemic pull-forwards in prior years, Roblox ( RBLX ) remains on the chopping block. The stock is already down 55% from the highs and the new short report from The Bear Cave could easily push Roblox down to new lows. My investment thesis is no longer ultra-Bearish on the metaverse gaming stock at $60, but Roblox is likely to trade lower before hitting bottom. Read the full article o...