Why Roblox Stock Slumped 21.7% in February

Investors lost confidence in Roblox (NYSE: RBLX) in the second month of 2022 after the company reported underwhelming revenue and user growth for the fourth quarter of 2021. According to data from S&P Global Market Intelligence, shares of the gaming platform dropped 21.7% in February.

On Feb. 15, Roblox released its earnings report for Q4 2021. Revenue hit $568 million in the quarter, up 83% year over year, but below analyst expectations of $604 million. Earnings per share was a loss of $0.25, which was worse than the consensus analyst expectation for a loss of $0.11 in the quarter. These two headline numbers are a big reason why Roblox dropped 20% the day following the report, making up the majority of the stock's losses last month.

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Source Fool.com