Roblox Releases Poor November Metrics; Shares Plunge 9%

Shares of American video game developer Roblox Corporation (RBLX) plunged 9% after the company released disappointing November month metrics.

Key November Metrics

The company’s daily active users increased 35% year-over-year to 49.4 million, while hours engaged jumped 32% year-over-year to 3.6 billion.

The company’s estimated bookings for November 2021 fell between $208 million and $211 million, reflecting a 22% to 24% growth compared to November 2020.

Roblox’s estimated average bookings per daily active user fell around 8% to 9% year-over-year between $4.21 and $4.27.

Overall, the company forecasts revenue to fall in the range of $184 million to $187 million, an 84% to 87% growth compared to November 2020.

Analysts’ Take

Following the news, Stifel Nicolaus analyst Drew Crum maintained a Buy rating on the stock with a price target of $134, which implies 36.8% upside potential to current levels.

Crum noted that Roblox’s November key performance indicators were below his estimates. Crum had estimated November bookings at around $220 million, much higher than Roblox’s actual figure.

Crum believes December is seasonally an important quarter for the company and thus kept his estimates unchanged.

With 7 Buys and 2 Holds, the stock commands a Strong Buy consensus rating. The average Roblox price target of $120.38 implies 22.9% upside potential to current levels. Shares have gained 40.9% over the past year.

Investors

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Roblox, with 24.8% of portfolios tracked by TipRanks increasing their exposure to RBLX stock over the last 30 days.