Roblox (RBLX) Soars 11.8%: Is Further Upside Left in the Stock?
Roblox (RBLX) shares ended the last trading session 11.8% higher at $37.12. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 22.1% gain over the past four weeks.
Shares of Roblox jumped after the company reported a solid surge in metrics for December 2022. Estimated bookings during the period were pegged between $430-$439 million, indicating a rise of 17-20% on a year-over-year basis. Daily active users during the month were 61.5 million, up 18% year-over-year.
This online gaming platform is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of -104%. Revenues are expected to be $858.41 million, up 11.5% 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, Monarch Casino (MCRI), finished the last trading session 1.9% lower at $79.22. MCRI has returned 4.5% over the past month.
Monarch Casino's consensus EPS estimate for the upcoming report has changed -4.1% over the past month to $1.24. Compared to the company's year-ago EPS, this represents a change of +21.6%. Monarch Casino currently boasts a Zacks Rank of #3 (Hold).
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Roblox Corporation (RBLX) : Free Stock Analysis Report
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