Why Roblox Stock Is Tumbling Today

Loading...
Loading...

Roblox Corp RBLX shares are trading lower Thursday following bearish analyst coverage from Morgan Stanley.

What Happened: Morgan Stanley analyst Matthew Cost downgraded Roblox from Equal-Weight to Underweight and lowered the price target from $27.50 to $24, citing valuation concerns and slower growth ahead. Following Roblox's December metrics release, Cost is concerned comparable numbers will get tougher moving forward.

Heading into the year, Morgan Stanley expected seasonality and easy comps to lead to a series of monthly metric releases showing accelerated bookings growth.

"However, following the significantly stronger than expected December results, RBLX is now up 28% YTD and we believe the 1H:23 reacceleration is now fully priced in," the Morgan Stanley analyst wrote in a new note to clients.

Cost expects growth to continue to accelerate in January before the company begins running into tougher comparable numbers. Morgan Stanley expects a "strong year-over-year deceleration" to begin in the third quarter.

Check This Out: Nasdaq, S&P 500 Futures Slump Ahead Of Netflix Earnings, Another Batch Of Economic Data

RBLX Price Action: Roblox has a 52-week high of $80.91 and a 52-week low of $21.65.

The stock was down 6.32% at $33.50 at time of publication, according to Benzinga Pro.

Photo: courtesy of Roblox. 

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: DowngradesAnalyst RatingsMoverswhy it's moving
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...