Roblox (NYSE: RBLX) shareholders lost ground to the market on Wednesday as the stock fell 11% by 1:15 p.m. ET, compared to a slight increase in the S&P 500. The slump pushed shares of the video game and digital content specialist deeper into negative territory; they are down over 60% so far in 2022.
It came as investors processed an unusually weak growth outlook from Netflix (NASDAQ: NFLX), another Wall Street favorite that has fallen out of favor recently.
Netflix announced before the market opened that its growth hit a wall in early 2022, in part thanks to rising competition in the digital content space. The company forecast even worse results ahead in the short term and warned that it will not be able to boost profitability at the pace investors have come to expect over the last few years.
Source Fool.com