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

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Roblox (RBLX - Free Report) ended the recent trading session at $75.83, demonstrating a -6.43% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.

The online gaming platform's shares have seen a decrease of 17% over the last month, not keeping up with the Consumer Discretionary sector's gain of 1.06% and the S&P 500's gain of 0.59%.

Analysts and investors alike will be keeping a close eye on the performance of Roblox in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.5, signifying a 51.52% drop 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$1.59 per share and revenue of $6.64 billion, indicating changes of -10.42% and 0%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 3.2% rise in the Zacks Consensus EPS estimate. Right now, Roblox possesses a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% of over 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.

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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