Roblox (NYSE: RBLX) had been quietly trouncing the market in 2023, nearly doubling the 17% return that investors have seen in the S&P 500 through early August. That all changed following its recent earnings report that contained a few yellow flags about the business and its profit potential.
The stock's earlier spike was partly thanks to a rally in the tech market and among growth stocks in general. Yet Roblox had contributed to its own good luck as well by posting over 20% sales growth, along with impressive engagement metrics.
Investors have some new questions on sales trends now, though, and the earnings picture has darkened. Let's take a look at whether the stock might still be a buy following its recent drop.
Source Fool.com