What Caught Our Attention in the Investment World? – Week of February 14-18, 2022

By Kuldip K. Ambastha

Roblox Corporation (RBLX), an online gaming and entertainment platform which brings people together over common interests, is a company we have covered in the past. (See “What Caught Our Attention in the Investment World? – Week of November 8-12, 2021; By Kuldip K. Ambastha” and “What Caught Our Attention in the Investment World? – Week of March 8-12, 2021; By Kuldip K. Ambastha” if needed.) In this past trading week, a -26.5% return was seen on Wednesday, February 16, 2022 and a -8.8% return was seen on Friday, February 18, 2022. On Wednesday, February 16, 2022, the company had its latest quarterly performance update.

Key metrics disclosed for the 4Q2021 quarter left Wall Street equity research analysts unhappy, since analyst estimates were not met or surpassed. As the COVID-19 public health situation has somewhat improved, Roblox’s previously strong performance has turned. Specifically, growth has slowed down for the company. Revenues, earnings, and average daily active users did not surpass forecasts. Nonetheless, Roblox is still optimistic that it has a bright future in the highly competitive and currently trendy metaverse sector, giving users an immersive online experience through digital avatar-based profiles.

Keywords – Roblox Corporation, Roblox Corp., Roblox, online, Internet, Web, gaming, entertainment, platform, users, daily active users, DAUs, growth, revenues, earnings, avatars, metaverse, creators, coronavirus, COVID-19, pandemic, public health, 4Q2021.

Disclosure – The principals of Ambastha Financial LLC have a short option position in RBLX. The 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 © 2022 – Ambastha Financial LLC.




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