Wall Street doesn't like to hear a company project net losses into the foreseeable future. There's even less of an appetite for red ink right now, as economic growth is slowing and interest rates are high.

These factors help explain why Roblox (NYSE: RBLX) stock, which had been a Wall Street favorite earlier in 2023, is now trailing the market by a wide margin. The digital-entertainment specialist told investors in its most recent earnings report that net losses aren't expected to end any time soon. There's more to the story than that, of course, but it's worth taking a closer look at Roblox's finances to ensure the business is still on a strong footing.

According to the average Wall Street pro, Roblox will lose $1.89 per share this year, representing expanding losses compared to last year's $1.81 per share of red ink. Losses should extend through 2024 at about the same pace, too.

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Source Fool.com