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

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Roblox (RBLX - Free Report) ended the recent trading session at $81.94, demonstrating a -2.35% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 1.31%.

Prior to today's trading, shares of the online gaming platform had lost 8.5% lagged the Consumer Discretionary sector's gain of 1.52% and the S&P 500's gain of 2.48%.

The upcoming earnings release of Roblox will be of great interest to investors. It is anticipated that the company will report an EPS of -$0.5, marking a 51.52% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.07 billion, up 52.11% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.59 per share and a revenue of $6.64 billion, representing changes of -10.42% and +51.88%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Roblox. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Over the past month, there's been a 1.22% rise in the Zacks Consensus EPS estimate. Roblox is holding a Zacks Rank of #3 (Hold) right now.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 30% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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