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Roblox (RBLX) Stock Drops Despite Market Gains: Important Facts to Note

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Roblox (RBLX - Free Report) closed the latest trading day at $36.64, indicating a -0.05% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.

The online gaming platform's stock has climbed by 1.27% in the past month, exceeding the Consumer Discretionary sector's loss of 4.5% and the S&P 500's loss of 0.9%.

The investment community will be closely monitoring the performance of Roblox in its forthcoming earnings report. The company is scheduled to release its earnings on May 9, 2024. The company is expected to report EPS of -$0.54, down 22.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $930.43 million, up 20.24% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$2.10 per share and a revenue of $4.23 billion, indicating changes of -12.3% and +20.08%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Roblox is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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