3 Red Flags for Roblox Stock's Future
Growth stocks have been getting hammered over the past month, and this trend has continued into earnings season. Even companies that beat analyst expectations have been hit, largely due to forecasts for slowing growth. PayPal (NASDAQ: PYPL), for example, has fallen over 44% in 2022 alone -- driven by underwhelming guidance in its Q4 2021 results.
Roblox (NYSE: RBLX) has suffered a similar fate. The company has fallen 50% year-to-date, with much of the drop coming from the company's fourth-quarter results. It reported slowing engagement and bookings, and while Roblox didn't report guidance, some of the figures it did provide gave analysts enough information to assume that the coming year could be painful. Investors like to buy the dip on growth stocks, but buying Roblox right now might be like trying to catch a falling knife.
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Source Fool.com
