3 Reasons to Buy Roblox, and 1 Reason to Sell
The metaverse pioneer has thrived during the pandemic. Roblox (NYSE: RBLX) has gained millions of daily active users, and revenue has exploded. The stock responded to the business's success, rising to over $120 per share at the peak. However, the stock has fallen sharply off the highs and is now trading at $50.
There is undoubtedly a reason for the market to be concerned about Roblox; economic reopening is starting to hurt engagement figures. That said, the headwinds from reopening have so far been mild. The dislocation between the mild falloff in engagement and the dramatic fall in the stock price has created an opportunity for long-term investors to accumulate shares in Roblox. What follows are three reasons that make Roblox a buy and one reason to hesitate.
Source Fool.com