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Roblox (RBLX) Suffers a Larger Drop Than the General Market: Key Insights

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Roblox (RBLX - Free Report) closed the most recent trading day at $104.94, moving -2.62% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.

Shares of the online gaming platform witnessed a gain of 15.35% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 5.29%, and the S&P 500's gain of 3.94%.

The investment community will be paying close attention to the earnings performance of Roblox in its upcoming release. The company is slated to reveal its earnings on July 31, 2025. The company's upcoming EPS is projected at -$0.36, signifying a 12.50% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.22 billion, reflecting a 27.52% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.38 per share and a revenue of $5.43 billion, signifying shifts of +4.17% and +24.22%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Roblox. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2% increase. As of now, Roblox holds a Zacks Rank of #2 (Buy).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 67, putting it in the top 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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