Is Roblox Stock a Buy Now?
Roblox's (NYSE: RBLX) stock price surged 20% on Oct. 17 after the gaming platform company revealed its September key growth metrics. It believes its bookings rose 11%-15% year-over-year during the month, even after absorbing a 6% impact from unfavorable foreign exchange rates.
Its daily active users (DAUs) increased 23% to 57.8 million, while its total number of hours engaged grew 16% to 4 billion. However, its estimated average bookings per DAU (ABPDAU) still fell 7%-10% year over year.
Those growth rates suggest that Roblox's business is finally stabilizing after lapping its post-pandemic slowdown, but do they indicate its stock can bounce back after shedding nearly 60% of its value this year? Let's reevaluate Roblox's near-term challenges and long-term growth potential to decide.
Source Fool.com
