Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

News Spotlights Stocks

Wolfe Research now has increased confidence in Roblox

post-img

Wolfe Research upgraded shares of Roblox (RBLX) to Peer Perform from Underperform in a note Friday following the company’s Investor Day.

Analysts said RBLX provided more color on its long-term financial framework and more details on its advertising opportunity at its Investor Day yesterday.

The firm said it is upgrading the stock as it has “increased confidence in durable bookings growth and margin expansion.”

“We initially downgraded RBLX to Underperform as we believed bookings growth expectations were too high, that expectations around the advertising opportunity were too early, and that meaningful operating leverage was still a ways away. However, after yesterday’s Investor Day, we walked away from the event with our concerns eased,” explained the analysts.

The firm’s concerns were eased due to management beginning to provide quarterly and annual guidance next quarter, which they believe will keep investor expectations for key metrics in check. In addition, during the Investor Day event, RBLX management disclosed that over the long term, the ad opportunity could be a $1B business. Furthermore, Wolfe Research note that RBLX management expects the rate of headcount growth to slow.

Related Post