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Roblox (RBLX) Moves 7.3% Higher: Will This Strength Last?
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Roblox (RBLX - Free Report) shares rallied 7.3% in the last trading session to close at $51.53. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.9% gain over the past four weeks.
Roblox's rally was likely buoyed by optimism surrounding a sharp rebound in on-platform engagement, supported by a broader risk-on move across U.S. equities. Easing geopolitical and inflation concerns, helped by lower oil prices after the reopening of the Strait of Hormuz following a U.S.-Iran agreement, improved investor appetite for growth stocks. Positive investor sentiment toward RBLX was further supported by reports pointing to a strong weekend spike in user activity, signaling improving platform momentum. The stock also benefited from reports of Russia lifting its Roblox ban after the company addressed local legal and child-safety requirements, while the rollout of Roblox Kids and Roblox Select accounts helped reinforce confidence in its safety and engagement strategy.
This online gaming platform is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of +17.1%. Revenues are expected to be $1.59 billion, up 10.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Roblox, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RBLX going forward to see if this recent jump can turn into more strength down the road.
Roblox is a member of the Zacks Gaming industry. One other stock in the same industry, Take-Two Interactive (TTWO - Free Report) , finished the last trading session 4.9% higher at $239.28. TTWO has returned -3.6% over the past month.
For Take-Two, the consensus EPS estimate for the upcoming report has changed -88.1% over the past month to $0.31. This represents a change of -49.2% from what the company reported a year ago. Take-Two currently has a Zacks Rank of #4 (Sell).
View the Zacks #1 Rank List
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Roblox (RBLX) Moves 7.3% Higher: Will This Strength Last?
Roblox (RBLX - Free Report) shares rallied 7.3% in the last trading session to close at $51.53. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.9% gain over the past four weeks.
Roblox's rally was likely buoyed by optimism surrounding a sharp rebound in on-platform engagement, supported by a broader risk-on move across U.S. equities. Easing geopolitical and inflation concerns, helped by lower oil prices after the reopening of the Strait of Hormuz following a U.S.-Iran agreement, improved investor appetite for growth stocks. Positive investor sentiment toward RBLX was further supported by reports pointing to a strong weekend spike in user activity, signaling improving platform momentum. The stock also benefited from reports of Russia lifting its Roblox ban after the company addressed local legal and child-safety requirements, while the rollout of Roblox Kids and Roblox Select accounts helped reinforce confidence in its safety and engagement strategy.
This online gaming platform is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of +17.1%. Revenues are expected to be $1.59 billion, up 10.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Roblox, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RBLX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Roblox is a member of the Zacks Gaming industry. One other stock in the same industry, Take-Two Interactive (TTWO - Free Report) , finished the last trading session 4.9% higher at $239.28. TTWO has returned -3.6% over the past month.
For Take-Two, the consensus EPS estimate for the upcoming report has changed -88.1% over the past month to $0.31. This represents a change of -49.2% from what the company reported a year ago. Take-Two currently has a Zacks Rank of #4 (Sell).