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NYSE:RBLX

Roblox (RBLX) Stock Price, News & Analysis

$40.53
+2.01 (+5.22%)
(As of 07/12/2024 ET)
Today's Range
$39.49
$40.68
50-Day Range
$30.42
$40.54
52-Week Range
$24.88
$47.20
Volume
8.29 million shs
Average Volume
4.97 million shs
Market Capitalization
$23.97 billion
P/E Ratio
N/A
Dividend Yield
N/A
Price Target
$42.59

Roblox MarketRank™ Stock Analysis

Analyst Rating
Moderate Buy
2.71 Rating Score
Upside/​Downside
5.1% Upside
$42.59 Price Target
Short Interest
Healthy
3.73% of Float Sold Short
Dividend Strength
N/A
Sustainability
N/A
News Sentiment
0.13mentions of Roblox in the last 14 days
Based on 29 Articles This Week
Insider Trading
Selling Shares
$10.95 M Sold Last Quarter
Proj. Earnings Growth
N/A

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

1.47 out of 5 stars

Consumer Discretionary Sector

213th out of 270 stocks

Prepackaged Software Industry

163rd out of 195 stocks

RBLX stock logo

About Roblox Stock (NYSE:RBLX)

Roblox Corporation is an American video game developer and platform that was founded in 2004 by David Baszucki and Erik Cassel. Headquartered in San Mateo, California, the company is best known for its creation, Roblox, which officially launched in 2006. Roblox is an online platform that allows users to create and play games developed by other users. It has become immensely popular among younger audiences and has grown into a global gaming phenomenon.

The history of Roblox Corporation dates back to its co-founder, David Baszucki's, previous venture, Knowledge Revolution, an educational software company. The foundation of Roblox Corporation was laid when Baszucki and Cassel started working on the video game DynaBlocks in 2004, which later evolved into Roblox. The company has come a long way since its inception and has achieved significant milestones in the gaming industry.

Roblox's mission is to unite people through play, enabling millions of users to immerse themselves in virtual worlds and interactive experiences. The platform encourages creativity, allowing users to create games and virtual spaces using the Roblox Studio, a powerful game development tool.

The company primarily operates Roblox as a platform where developers can design and publish their games and experiences. Roblox provides a revenue-sharing model, allowing developers to monetize their creations through virtual in-game purchases. These purchases are made using the platform's virtual currency, Robux, which can be purchased with real money.

Roblox's target market primarily includes a wide range of audiences, but it has gained immense popularity among younger players and teenagers. The platform's user-friendly nature and a vast library of user-generated games appeal to individuals who enjoy exploring virtual worlds and engaging in social experiences.

An experienced and visionary management team leads Roblox Corporation. Founder, President, Chief Executive Officer, and Chairman David Baszucki is at the helm. Baszucki brings decades of experience in the technology and gaming industry, and his leadership has been instrumental in Roblox's growth and success. Michael Guthrie is the Chief Financial Officer, overseeing the company's financial strategies and operations. 

Roblox Corporation's financial data indicates some challenges. The company reported revenue that was an increase from the previous year. However, operating expenses significantly rose during the same time resulting in a net income loss of nearly a billion dollars, representing a sharp decline from previous years. The net profit margin for the year was around -40%. The decline in net income impacted investor sentiment. Investors closely monitor a company's profitability, and a negative net income could raise concerns about the company's financial health and future growth prospects. This could be reflected in the stock price performance. 

Roblox operates in the prepackaged software industry and has carved out a unique position as an online gaming platform that fosters user-generated content. The company's competitive advantage lies in its vast user base, innovative game development tools, and the creative freedom it offers developers.

Roblox Corporation's growth opportunities are tied to the ever-expanding gaming industry. The platform attracts millions of developers and players worldwide, presenting opportunities for continuous user engagement and game development. Expanding into new markets and partnerships with popular brands can fuel further growth.

Like any company, Roblox Corporation faces risks and challenges. The negative net income and increasing operating expenses indicate financial challenges that must be addressed. Moreover, competition in the gaming industry is intense and maintaining users' interest requires continuous innovation. Additionally, regulatory and legal issues related to user-generated content may pose challenges for the company.

RBLX Stock Price History

RBLX Stock News Headlines

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Company Calendar

Last Earnings
5/09/2024
Today
7/14/2024
Next Earnings (Confirmed)
8/01/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Industry
Prepackaged software
Sub-Industry
N/A
Fax
N/A
Employees
2,457
Year Founded
N/A

Price Target and Rating

Average Stock Price Target
$42.59
High Stock Price Target
$56.00
Low Stock Price Target
$26.00
Potential Upside/Downside
+5.1%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.71
Research Coverage
24 Analysts

Profitability

Net Income
$-1,151,950,000.00
Pretax Margin
-39.39%

Debt

Sales & Book Value

Annual Sales
$2.80 billion
Book Value
$0.11 per share

Miscellaneous

Free Float
460,327,000
Market Cap
$23.97 billion
Optionable
Optionable
Beta
1.59
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Should I Buy Roblox Stock? RBLX Pros and Cons Explained

Pros

Here are some ways that investors could benefit from investing in Roblox Co.:

  • Roblox stock has an average rating of "Moderate Buy" with a price target of $42.14, indicating potential growth.
  • Recent insider transactions show CEO and Director selling shares at higher prices, suggesting confidence in the company's future performance.
  • Wells Fargo & Company raised the price target for Roblox from $37.00 to $41.00, indicating positive analyst sentiment.
  • Despite a slight decrease in stock price, Roblox has a market capitalization of $21.00 billion, reflecting a strong position in the market.
  • Roblox has a diverse user base and a popular platform, which could lead to continued revenue growth and market expansion.

Cons

Investors should be bearish about investing in Roblox Co. for these reasons:

  • Roblox stock is currently trading at $35.51, slightly lower than the average price target of $42.14, indicating potential overvaluation.
  • Multiple analysts have lowered their price targets for Roblox, signaling potential concerns about future performance.
  • The company's P/E ratio of -19.09 may indicate overvaluation or future earnings uncertainty.
  • Roblox's 12-month high of $47.20 suggests potential volatility in the stock price.
  • High debt-to-equity ratio of 16.04 could pose risks in terms of financial stability and future growth prospects.
These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Friday, July 5, 2024. Please send any questions or comments about these Roblox pros and cons to contact@marketbeat.com.

RBLX Stock Analysis - Frequently Asked Questions

How have RBLX shares performed this year?

Roblox's stock was trading at $45.72 on January 1st, 2024. Since then, RBLX stock has decreased by 11.4% and is now trading at $40.53.
View the best growth stocks for 2024 here
.

How were Roblox's earnings last quarter?

Roblox Co. (NYSE:RBLX) posted its earnings results on Thursday, May, 9th. The company reported ($0.43) earnings per share for the quarter, topping the consensus estimate of ($0.53) by $0.10. The company's revenue for the quarter was up 19.4% on a year-over-year basis.

What is David Baszucki's approval rating as Roblox's CEO?

144 employees have rated Roblox Chief Executive Officer David Baszucki on Glassdoor.com. David Baszucki has an approval rating of 98% among the company's employees. This puts David Baszucki in the top 20% of approval ratings compared to other CEOs of publicly-traded companies. 79.0% of employees surveyed would recommend working at Roblox to a friend.

When did Roblox IPO?

Roblox (RBLX) raised $0 in an initial public offering (IPO) on Wednesday, March 10th 2021. The company issued 198,900,000 shares at a price of $0.00 per share. Goldman Sachs and Morgan Stanley acted as the underwriters for the IPO.

Who are Roblox's major shareholders?

Top institutional investors of Roblox include Douglas Lane & Associates LLC (0.04%), DNB Asset Management AS (0.01%), CWM LLC (0.01%) and SG Americas Securities LLC (0.01%). Insiders that own company stock include Gregory Baszucki, Han Kim, Craig Donato, Manuel Bronstein, Daniel Sturman, Michael Guthrie, Mark Reinstra, Arvind Chakravarthy, Barbara Messing, David Baszucki, Amy Marie Rawlings, Andrea L Wong, Hybrid 2 LP Altos, Altos Ventures Management Inc and Brett Tolley.
View institutional ownership trends
.

How do I buy shares of Roblox?

Shares of RBLX stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

This page (NYSE:RBLX) was last updated on 7/14/2024 by MarketBeat.com Staff

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