Roblox Stock (NYSE:RBLX)
On Tuesday, investors reacted warmly to the gaming platform business Roblox (NYSE:RBLX) reporting good earnings for December, which caused the Roblox stock to soar about 14%.
And it’s possible that this bullish response was partly influenced by the fact that Roblox intends to discontinue sending out such monthly data updates.
Before trading began, Roblox (NYSE:RBLX) said it had 61.5M daily average users in December, an increase of 18% compared to the same month in 2021. Additionally, the company reported that the engaged hours of users increased by 21% from the previous year, reaching 4.7B hours.
Roblox (NYSE:RBLX) said that revenue for the month was “expected” to be between $189M and $199M, which would decrease between 1% and 6% compared to the same time last year.
Roblox (NYSE:RBLX) said that strengthening the U.S. dollar relative to other currencies, such as the British pound and the euro, continues to impact the company’s sales. Roblox reported that its average daily bookings were between $6.99 and $7.14 per user, which, depending on the company’s final results, either decreased by 1% or increased by as much as 1% compared to December 2021. Roblox’s overall revenue was also affected by the level of the currency that it was transacting in.
Roblox (NYSE:RBLX) said that its total bookings for the month came in between $430 million and $439 million, representing a year-over-year increase of 17% to 20%. This indicates that overall bookings for the month were quite successful.
Roblox has also announced that its monthly metrics reports will be discontinued after March this year. After doing so for the first eight quarters as a public company, the company stated that it was taking this step because “we think that has provided incremental information to investors regarding the seasonality of the business.” (We believe that this has provided investors with additional information.) Roblox has announced that starting with the second quarter of this year, it will continue to release such data every quarter.
Both Wall Street analysts and Seeking Alpha contributors agree that the best course of action for investors is to maintain their hold recommendations on Roblox stock. The stock has been assigned a hold rating by Seeking Alpha’s Quant System, which has a track record of outperforming the stock market’s performance.
Featured Image: Megapixl @ Rimidolove
Author Shariq Khan 
