Roblox Stock Plunges 9% After Hindenburg ReportRoblox Corporation (NYSE: NYSE:RBLX ), the popular online gaming platform, suffered a sharp decline in its stock price after Hindenburg Research released a damning short report. The report accuses Roblox of inflating key metrics, persistent losses, and raising serious concerns about child safety on its platform. As both technical and fundamental indicators signal trouble, investors are now left to assess the potential fallout from these accusations.
Checkout Hindenburg's Allegations and Financial Woes
The Hindenburg Research report, published on Tuesday, sent Roblox’s stock tumbling by over 9% in premarket trading. The short seller claims that Roblox (NYSE: NYSE:RBLX ) has consistently misled investors about its Daily Active Users (DAUs), accusing the company of inflating this key metric by 25-42%. Hindenburg further suggests that many DAUs include duplicate or alternate accounts, such as bots used to "farm" in-game goods, making the reported user engagement metrics highly misleading.
Additionally, the report highlights Roblox’s persistent financial losses, stating that the company has not turned a profit since going public. Over the last twelve months, Roblox (NYSE: NYSE:RBLX ) has recorded losses totaling $1.07 billion, despite its impressive $27 billion market valuation. Hindenburg argues that Roblox’s high price-to-sales ratio of 8.6 far exceeds that of its gaming industry peers, reflecting unrealistic growth expectations.
The report also raises alarming safety concerns, alleging that Roblox’s moderation systems are insufficient to protect its predominantly young user base from exposure to inappropriate content and predatory behavior. Hindenburg claims that Roblox (NYSE: NYSE:RBLX ) has adopted a “growth at all costs” approach haha but that's insane, saying they prioritized inflated metrics over the safety of its users.
In response, Roblox (NYSE: NYSE:RBLX ) has remained silent, declining to comment on the report. This lack of transparency has only added to investor concerns, as shares continued to fall throughout the trading session.
Technical Outlook
From a technical perspective, Roblox's stock is exhibiting significant weakness. After forming a bullish flag pattern in early September 2023, which suggested a potential upward move, the pattern ultimately failed as the ceiling of the flag broke down following so many factors Ps the release of the Hindenburg report. The stock is now trading within a falling wedge pattern, a typically bearish formation.
As of the time of writing, NYSE:RBLX is down 4%, with the stock trending lower over the past few sessions. The moving averages (MA) are beginning to form a “dead cross” pattern, where the short-term moving average crosses below the long-term moving average. This is a classic indicator of potential extended bearish momentum in the coming weeks.
The Relative Strength Index (RSI) currently sits at 30.76, just above the oversold threshold of 30. While an RSI this low can sometimes signal an opportunity for a reversal, the broader technical landscape suggests that Roblox’s stock may continue to face downward pressure. Moreover, the recent candlestick pattern shows a bearish harami, which further indicates that a reversal is unlikely in the near term.
Conclusion
Hindenburg Research's scathing short report has undoubtedly shaken investor confidence in Roblox (NYSE: NYSE:RBLX ). Too sad hoping it won't affect our gaming experience. The allegations of inflated user metrics, persistent financial losses, and safety concerns present significant risks to the company's reputation and growth trajectory. Roblox’s financial struggles, including its failure to turn a profit, are compounded by an overvalued stock price, making it increasingly vulnerable to further downward pressure.
From a technical standpoint, the stock’s current position within a falling wedge pattern and the emerging dead cross signal additional bearish momentum. With the RSI hovering near oversold levels and no clear signs of a reversal, Roblox may continue to slide in the short term.
Investors should exercise caution and closely monitor how Roblox (NYSE: NYSE:RBLX ) responds to these allegations. Until the company can provide clarity or address the concerns raised by Hindenburg, NYSE:RBLX may face continued volatility. Long-term investors may want to wait for more stability in both the company's fundamentals and its stock chart before considering any moves.
Robloxidea
Cathie Wood’s ARK Stacks RobloxA World of Endless Possibilities
Roblox ( NYSE:RBLX ) isn't just a game; it's a universe where users become creators, architects of their own virtual realms. With its user-generated content model, Roblox ( NYSE:RBLX ) empowers millions to build, share, and explore immersive experiences. From bustling metropolises to fantastical realms, Roblox ( NYSE:RBLX ) fosters a sense of limitless creativity, inviting players to shape their own destinies within its virtual confines.
ARK Invest's Vote of Confidence
Amidst the digital renaissance, Roblox ( NYSE:RBLX ) has garnered the attention of seasoned investors like ARK Invest, led by the visionary Cathie Wood. As ARK dumps millions into Roblox ( NYSE:RBLX ) stock, signaling confidence in its long-term prospects, the platform's significance in the online gaming ecosystem is underscored. With each investment, ARK reaffirms Roblox's position as a pioneering force in the metaverse.
Expanding Horizons and Capturing Imaginations
Roblox's allure extends far beyond its gaming roots. Through strategic partnerships and innovative initiatives, the platform continues to push the boundaries of virtual entertainment. From virtual concerts to educational experiences, Roblox ( NYSE:RBLX ) transcends conventional gaming, offering a glimpse into the future of interactive media.
Empowering Creativity and Collaboration
At the heart of Roblox ( NYSE:RBLX ) lies a thriving community of creators, united by a shared passion for innovation and expression. Through collaborative endeavors and user-generated content, Roblox fosters a culture of creativity and inclusivity, where anyone can find their voice and leave a lasting impact on the digital landscape.
Charting a Course for the Future
As Roblox ( NYSE:RBLX ) charts a course for the future, fueled by ARK Invest's vote of confidence, the platform remains steadfast in its commitment to fostering innovation and fostering meaningful connections. With the recent launch of its self-custodial wallet app, Roblox ( NYSE:RBLX ) continues to blur the lines between virtual and reality, offering users new avenues for self-expression and financial empowerment.
RBLX - Price Targets & Stop Loss📈 What’s up investors! 📉
Welcome back to another one of
💡“Mike’s Ideas”.💡
I post as I find signals… these signals are based on the personal rules I have built and follow in order to make up what I call the “SST Strategy”. Follow for more ideas in the future!!
I have 4 levels marked and colour coded on the Chart.
These levels are:
⚪ White = Entry Point
🔴 Red = Stop Loss
🟢 Green = 1.2:1 Risk Reward Ratio
🟡 Yellow = 1.5:1 Risk Reward Ratio
🔵 Blue = 2:1 Risk Reward Ratio
👀 So what are we looking at today…!!!
🚨( RBLX ) Roblox Corporation🚨
Roblox Corporation develops and operates an online entertainment platform. The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform. It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific, and internationally. The company was incorporated in 2004 and is headquartered in San Mateo, California.
Roblox in expanding wedge.Roblox - 30D expiry- We look to Sell at 40.68 (stop at 43.71)
Price action has formed an expanding wedge formation.
The trend of higher highs is located at 41.00.
We look for a temporary move higher.
Preferred trade is to sell into rallies.
The primary trend remains bearish.
Expect trading to remain mixed and volatile.
Our profit targets will be 33.33 and 31.33
Resistance: 38.00 / 40.00 / 42.50
Support: 34.00 / 32.00 / 30.00
Disclaimer – Saxo Bank Group.
Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
Roblox at resistance? Roblox
Short Term
We look to Sell at 51.37 (stop at 57.06)
Preferred trade is to sell into rallies. Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible. A lower correction is expected. Early optimism is likely to lead to gains although extended attempts higher are expected to fail.
Our profit targets will be 38.28 and 17.19
Resistance: 51.00 / 64.00 / 89.00
Support: 38.00 / 25.00 / 22.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
Roblox breaking out? Roblox
Short Term
We look to Buy at 35.79 (stop at 30.79)
We look to buy dips. The trend of higher lows is located at 32.90. Previous resistance level of 36.00 broken. Posted a Double Bottom formation. Further upside is expected although we prefer to set longs at our bespoke support levels at 36.00, resulting in improved risk/reward.
Our profit targets will be 52.84 and 66.00
Resistance: 53.00 / 70.54 / 75.00
Support: 36.00 / 22.50 / 15.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
Roblox collapsing? Roblox
Short Term - We look to Sell at 33.44 (stop at 37.68)
Preferred trade is to sell into rallies. Price action has posted a Doji candle and confirms a possible stall in the recent move. We look for price action to stay within the channel formation today. Prices expected to stall near trend line resistance. Offers ample risk/reward to sell at the market.
Our profit targets will be 20.91 and 17.19
Resistance: 34.00 / 50.00 / 75.00
Support: 30.00 / 20.00 / 15.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
RBLX Sell-off anticipated in the Options Market !!Before placing a strangle option on this particular stock, yesterday i was monitoring the options market for a possible outcome.
And it was extremely interesting to see that the high conviction trades were slightly bearish: 5.2K Puts and only 2.3K Calls yesterday.
And guess what happened at the earnings today:
Revenue: $568 million vs $604 million expected
Bookings: $770 million vs $786 million expected
Losses per share: $0.25 vs $0.11 expected
User growth: 49.5 million daily active users vs 50.1 million expected.
So following the "smart money" wasn`t a bad idea after all. :)
Now considering that Ark Invest bought the stock lately, i think it still has potential on the long run (Ark has a 5 year term targets compared to the usual 1 year analysts ratings).
RBLX, 14 Jan. Support at the End of the Tunnel.RBLX approaches an area of geometric confluence which indicates a potential support. Roblox has seen some insider selling, but also secured new funding and established web3 & metaverse partnerships in January.
Geometry:
The green support/resistance diagonals cross at $75.
Elliott:
We can count a completing ABC correction. The 78.6 fib retracement is around $73.
Oscillators:
The Stochastic is oversold since mid-December and due to move back up. The RSI is about to enter the oversold area.
Volume:
Declining volume signals a potential exhaustion of sellers.
How to trade it:
The idea is to try a long position in the area between the 78.6 retracement and the green trend line. If price continues to decline, a double bottom at $70 would be the next possibility for an aggressive entry. Indices, especially mega caps, must stabilize for a bullish environment for this idea to work.
Roblox Analysis 16.12.2021Hello Traders,
welcome to this free and educational analysis.
I am going to explain where I think this asset is going to go over the next few days and weeks and where I would look for trading opportunities.
If you have any questions or suggestions which asset I should analyse tomorrow, please leave a comment below.
I will personally reply to every single comment!
If you enjoyed this analysis, I would definitely appreciate it, if you smash that like button and maybe consider following my channel.
Thank you for watching and I will see you tomorrow!
ROBLOX- My Youngest Son's Pick (almost 6)Rule number 1: Always listen to your kids financial advise.
When kids want something they usually get it, given that the price is right.
In this case the chart is right (price at a nice support as you can see on our chart).
Market cap at 67 Billion sounds 'wrong' but I'm ok to risk it and go with the trend here.
Some funds going to ROBLOX today.. hopefully it goes well so I can cover the cost of having my son paying for this and for that over there. Quite funnily I ended up spending a few Robux (that's the currency there) for one of the meta-rides. It was quite fun to be honest.
Top tips for parents:
Our advice is the same no matter which gaming site your child is using, it is important to have a conversation with your child about the sites they use and carry on an open discussion which will help them to come to you with any concerns they may have. Involving your child in discussions and decisions about online safety and their internet usage will help them to understand why it is important that they stay safe whilst at the same time have a great time online. It will also help to educate them about how they can keep themselves safe online and know what to do if something goes wrong.
We might spend sometime with my small one playing on Roblox but we also play football, do math and learn to write.
Not a parent yet??
Then get off Tradingview and go make one! There is no bigger pleasure or meaning in life. The time is never right, just do it. This is the only advise you should take from me.
One Love,
the FXPROFESSOR
Ps. my first son is 16, he is into UFC3. Hopefully soon I will be able to get him this .. his own Avatar to play himself rather than Conor McGregor in the game. All thanks to my favorite crypto right now: metahero Marketcap at 2 Billion sounds promising ...
$RBLX Up or Down. Technical Analysis.$RBLX Roblox T/A
NOTES:
- $RBLX has hit the ATH Resistance line at around $138/s.
- Up-Trend after Earnings call.
Take Away:
- Watch the $RBLX next moves.
- If RBLX breaks the resistance line it will continue UP TREND.
- IF RBLX tests the Resistance line few times it will price correct to the nearest mid-support at $120/s
- There are 2 recent RSI Divergence that occured, recent one was on Friday close. WATCH for price correction within the next day.
RBLX Daily TimeframeSNIPER STRATEGY (new version)
It works ALMOST ON ANY CHART.
It produces Weak, Medium and Strong signals based on consisting elements.
NOT ALL TARGETS CAN BE ACHIEVED, let's make that clear.
TARGETS OR ENTRY PRICES ARE STRONG SUPPORT AND RESISTANCE LEVELS.
ENTRY PRICE BLACK COLOR
TARGETS GREEN COLOR
STOP LOSS RED COLOR
DO NOT USE THIS STROTEGY FOR LEVERAGED TRADING.
It will not give you the whole wave like any other strategy out there but it will give you a huge part of the wave.
The BEST TIMEFRAMES for this strategy are Daily, Weekly and Monthly however it can work on any timeframe.
Consider those points and you will have a huge advantage in the market.
There is a lot more about this strategy.
It can predict possible target and also give you almost exact buy or sell time on the spot.
I am developing it even more so stay tuned and start to follow me for more signals and forecasts.
START BELIEVING AND GOOD LUCK
HADIMOZAYAN
A trading idea on RBLX! 👍RBLX is one of the stocks I’m looking at right now, it seems we could have a buy here (very risky one, but it is interesting).
We have a pivot at 83.36, and this could reverse the trend on RBLX, if triggered.
The problem is that the 4h could be more oversold. The RSI is not that low, and we could hit the 77 area, as this is a support level for RBLX.
But we have the beginning of a possible reversal here, especially if RBLX triggers the pivot mentioned above.
If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉.
See you soon,
Melissa.
RBLX Strong Growth Potential - Roblox I am Familiar with this company as all my children play or use some game on the
Roblox Network . Upon having to submit my debit card info to the kids to top up on some power they need
in game or to reach a new level I can say that Roblox have captured there market very well .The Kids to Play and the Adults to Pay .
With better than expected results on the last earnings and the current picture on world affairs I can see a strong argument for growth in this sector .
This is a newly listed company and as drawn on the chart we are trading within a Ascending Channel and are currently testing the top of the channel.
We may break out of the channel but I expect to back test support which sits at the point of control and a FIB .618 pull for additional confluence.
This will be a great Buy opportunity when it presents itself , in the meantime set an alert close to this region and be prepared to pull the trigger for a stock that
has Strong growth potential .
Ensure you know your Invalidation and use a SL , any questions then please ask , Drop me a LIKE and FOLLOW for regular Setups.
RBLX back to 75+?RBLX 1HR Timeframe -
RBLX had a nice breakout of the downtrend 2 weeks ago and a rally to new highs, price has seen a nice correction, retesting that downtrend and bouncing perfectly. Some bullish option flow coming in and with this strong close today at high 71 level, we could see a possible impulse move to 75+ by end of week. Currently has some strong downtrend resistance (green line). A break over 72-73 level and hold would confirm a reversal to the upside. If we see see a slight sell off during pm I will look to buy the dip for some weekly call options. Under 69.16-68.60 would indicate more downside. Keep in mind there is a going to be lots of volatility (short term) with this name.
Currently holding 71C, 75C weeklies, 70-77 weekly calls (lottos, high R/R), next week or May contracts would be safer don't recommend leaps on this just yet.
RBLX IPO (ROBLOX CORPORATION)Roblox is an online gaming and entertainment platform for a shared digital experience that brings people together through play. It enables anyone to imagine, create, and have fun with friends as they explore interactive 3D experiences produced by developers using their desktop design tool, Roblox Studio. The company is backed by Altimeter Capital, Dragoneer Investment Group, Investment Group of Santa Barbara, and Warner Music Group. The San Mateo, California-based company was established by Erik Cassel and David Baszucki in 2004.
Roblox Registers With SEC for $1 Billion IPO
Video game company Roblox has filed a registration statement with the Securities and Exchange Commission for an initial public offering of $1 billion of class A common shares.
The company, which also offers a platform for creating games, is seeking to list its shares on the New York Stock Exchange under the symbol "RBLX."