What Caught Our Attention in the Investment World? – Week of November 8-12, 2021

By Kuldip K. Ambastha

On Tuesday, November 9, 2021, shares of Roblox Corporation (RBLX), an online gaming and entertainment platform which brings people together over common interests, shot up by +42.2% for the trading day. (See What Caught Our Attention in the Investment World? – Week of March 8-12, 2021; By Kuldip K. Ambastha for prior coverage of Roblox.) This spike was caused by impressive 3Q2021 numbers. Revenues, bookings, daily active users, hours engaged, and other key metrics all grew immensely. However, Roblox is still not a profitable company. The 3Q2021 net loss figure was $74 million, however the company still is showing positive free cash flow. The company also showed strong year-over-year growth. Roblox is hoping that its offerings become a staple of every user’s life even if and when public health conditions around COVID-19 improve, allowing for more opportunities to be out of the house. In a sign that investors may have used the 3Q2021 results to take profits from this highly volatile growth stock, on Wednesday, November 10, 2021 the shares posted a -13.0% loss for the trading day. Though the 3Q2021 results were impressive, perhaps they still were not impressive enough.

Keywords – Roblox Corporation, Roblox Corp., Roblox, Roblox Studio, online, Internet, Web, gaming, entertainment, platform, 3Q2021, year-over-year, users, daily active users, DAUs, creators, revenues, bookings, hours engaged, profits, losses, free cash flow, metrics, growth, volatility, coronavirus, COVID-19, pandemic, vaccinations, public health.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in RBLX.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.




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