- KeyBanc analyst Tyler Parker revisited the Roblox Corp RBLX story ahead of the May metrics report expected on June 15.
- The revisit followed negative guidance revisions for both Abercrombie & Fitch Co ANF and Snap Inc SNAP in recent weeks. Both companies focused on a demo skewing toward Gen Z.
- Looking at Alphabet Inc GOOG GOOGL Google Trends searches with relevant correlations, Parker believed May bookings were at risk of coming in weaker-than-expected.
- Recent trends reinforced the idea that Parker needed to see evidence of a reacceleration in the numbers before underwriting it with confidence.
- Parker said the new monetization initiatives outlined last quarter were encouraging. However, the most meaningful initiative, advertising, remained more in the midterm.
- Parker acknowledged growing concerns that Snap's recent disappointing quarterly report and outlook did not bode well for Roblox.
- The disappointing outlook triggered concerns over signs of pressure on the discretionary income of younger demographics relevant to Roblox.
- Parker remained Sector Weight.
- Price Action: RBLX shares traded higher by 5.66% at $33.26 on the last check Wednesday.
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