Why Roblox Stock Dropped Thursday
Roblox Corporation (NYSE: RBLX) shares plunged in Thursday trading to close the day down 7.8%. This was the second day in a row of prices falling since the company reported blockbuster sales growth in its first earnings report post-IPO.
Two factors appear to be contributing to the declines. First: Competition.
As videogameschronicle.com reported late Tuesday (perhaps not coincidentally, just hours after the earnings report that sent Roblox stock flying), video game producer Ubisoft is shifting its business model away from relying solely on sales of high-price "AAA releases" and evolving to offer a "high-quality line-up that is increasingly diverse," including "building high-end free-to-play games."
Source Fool.com
