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Roblox (RBLX) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Roblox (RBLX - Free Report) standing at $41.99, reflecting a -0.45% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.9%. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.

Heading into today, shares of the online gaming platform had lost 3.5% over the past month, lagging the Consumer Discretionary sector's gain of 4.88% and the S&P 500's gain of 3.15% in that time.

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 October 31, 2024. In that report, analysts expect Roblox to post earnings of -$0.39 per share. This would mark year-over-year growth of 13.33%. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 21.19% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.59 per share and a revenue of $4.22 billion, indicating changes of +14.97% and +19.83%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Roblox. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Roblox is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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