Why Roblox Stock Tumbled, Then Mostly Recovered, on Wednesday
Shares of video gaming company Roblox (NYSE: RBLX) are 2.5% lower as of 2:27 p.m. ET Wednesday, according to data from S&P Global Market Intelligence. It was bouncing back from an intraday sell-off that was pricing the stock down as much as 9.6% early in the trading session. The move follows yesterday's post-close release of a somewhat disappointing second-quarter report.
Sales were healthy enough...sort of. The top line of $591.2 million was up 30% year over year. The figure still fell well short of analysts' expectations for revenue of $638.6 million, though. The loss of $0.30 per share also expanded on the year-ago loss of $0.25, versus expectations for a narrower loss of $0.22 per share.
That wasn't the shortcoming that initially spooked investors, however. More troubling was Roblox's booking metrics. Total bookings of $639.9 million slipped 4% year over year, with bookings for its daily average number of users falling 21% year over year to only $12.25. It was the second consecutive quarter both metrics fell to such a degree. For a company that's been deemed a leader in the metaverse movement, it's a concerning setback.
Source Fool.com
