Roblox Stock Is Down 60% From Its Highs. Is It a Buy?
Shares of Roblox (NYSE: RBLX) shed more than a quarter of their value after the video-game developer's fourth-quarter report fell short of investors' lofty expectations.
Is Roblox's battered share price a sign of more pain ahead for shareholders? Or could it represent an attractive buying opportunity?
Count Benchmark analyst Mike Hickey among the bears. Hickey has a sell rating on Roblox. He cautions that the game platform's growth accelerated during the pandemic as coronavirus-related restrictions kept millions of kids indoors. But now that most of those restrictions are lifted, children are back at school and resuming their traditional outdoor activities. Roblox's growth could thus decelerate markedly, as we saw in its fourth-quarter results.
Source Fool.com
