The Roblox Gaming Platform No Longer Sees Clearly
2 min read
The desperate cry came booming out of the heart of social media.
“ROBLOX UR STOCK IS DIVING INTO THE MULTIVERSE OF DOCTOR STRANGE,” the commenter tweeted, referring to the recent Marvel film. “THIS ISNT HELPING.”
That might sound a little harsh, but Roblox Corp. (RBLX) – Get Roblox Corp. Class A Report, a video game developer, has been hit with some bad mojo in the last few months.
‘The Foreseeable Future’
Founded by David Baszucki and the late Erik Casse, Roblox finished down nearly 11% to $30 on June 3, a far, far cry from its all-time closing price high of $134.72, which it reached on Nov. 19. The stock has lost 71% of its value since January, and about $40 billion in market cap evaporated during this time.
The company released Roblox, an online game platform and game creation system, that allows users to program games and play games created by other users.
There are over 202 million monthly active Roblox users worldwide, the company said.
Roblox is free to play, with in-game purchases available through a virtual currency called Robux.
Lately, analysts have not been high on Roblox, which went public on March 10, 2021.
The company missed Wall Street’s expectations for two quarters in a row as covid-19 pandemic restrictions eased and users starting going out again.
Roblox said in a letter to shareholders that “we expect to continue to report net losses for the foreseeable future even as we anticipate generating net cash from operating activities.”
‘Flagging User Engagement’
Last month, Kunaal Malde, an analyst with Atlantic Equities, downgraded the company to neutral, saying that flagging user engagement numbers suggest trouble ahead as the company tries to monetize its online gaming platform.
Malde also cut his price target to $30 per share from $60.
Morgan Stanley analyst Brian Nowak expressed concern over the company’s top-line growth in the second half of the year.
Nowak, who lowered his price target from $32 to $27, predicted that increased investments to…
2022-06-05 09:41:00
All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator
Read more from original source here…
