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.
Robloxstock
Roblox Stock Dives 29% as Firm Misses Q1 Revenue EstimatesRoblox ( NYSE:RBLX ), an online gaming platform and game creation system, missed analysts' expectations in Q1 CY2024, with revenue up 22.3% year on year to $801.3 million. The company's next quarter's revenue guidance of $867.5 million also underwhelmed, coming in 7.6% below analysts' estimates. Roblox ( NYSE:RBLX ) made a GAAP loss of $0.43 per share, improving from its loss of $0.44 per share in the same quarter last year.
Roblox ( NYSE:RBLX ) is best known for its wide assortment of user-generated content and is best known for its wide assortment of user-generated content. Video gaming has gradually taken more share of entertainment time since the 1970s, with ubiquitous mobile devices driving a surge in "snackable" games that can be played on the go. The business models of games publishers have become less volatile due to digitization of distribution, in game monetization, and an increasing dependence on surefire hit franchises. Covid-driven lockdowns accelerated adoption and usage of videogames, a trend that has not slowed.
Roblox's revenue growth over the last three years has been mediocre, averaging 15.2% annually. This quarter, Roblox ( NYSE:RBLX ) reported decent 22.3% year-on-year revenue growth, falling short of analysts' expectations. Guidance for the next quarter indicates Roblox ( NYSE:RBLX ) is expecting revenue to grow 27.4% year on year to $867.5 million, improving from the 15.1% year-on-year increase it recorded in the comparable quarter last year. Ahead of the earnings results, analysts were projecting sales to grow 49.5% over the next 12 months.
Roblox's Q1 results struggled to find many strong positives in these results. Its full-year bookings guidance of 15% year-on-year growth missed analysts' expectations, and investors are punishing the stock because management said it would grow at 20%+ annually for the next few years at its November 2023 Investor Day. On top of that, Roblox ( NYSE:RBLX ) announced it would start calculating adjusted EBITDA differently, raising some questions. Overall, the results could have been better. The company is down 29.3% on the results and currently trades at $27.6 per share.
Roblox ( NYSE:RBLX ) cut its annual bookings forecast on Thursday, in a sign that people were dialing back on spending within its video-gaming platform amid an uncertain economic outlook and elevated levels of inflation. The company's shares fell 18% in premarket trading. The gaming industry is grappling with lower engagement, which is expected to keep growth in the PC and console market below pre-pandemic levels through 2026, according to research firm Newzoo. The number of hours gamers aged 13 or more spent on Roblox's platform grew by 19% in the first quarter, the lowest growth rate for the company in about two years.
Roblox ( NYSE:RBLX ) has turned to digital ads to diversify its revenue. Earlier this month, it started displaying virtual billboards featuring content from brands such as Walmart (WMT.N) and Warner Bros Discovery (WBD.O).
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 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 stock price and forecast 2022The stock has been dumped since last January 2022, losing almost 85% of its value. Per supply and demand stock analysis, we expect Roblox’s stock price to reach the supply imbalance of around $103 per share, where we should realise profits if we purchase shares of the stock. There is a medium-term bias with a lot of margin for profit on Roblox stock, with a potential rise of more than 100% in the following months. The supply and demand stock technical analysis attached does not say that Roblox will rally to the strong imbalance overhead without first pulling back. Stocks do not move in straight lines; be patient!
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.
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).
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
RBLX BreakoutFrom a purely charting perspective, this is a textbook setup for a breakout to the upside. One month full of consolidation, and now the chart is painting higher lows and clearing moving averages.
Aside from a heavy supply zone @ ~$86-87, a clear break and close above that level this week should send RBLX to $100+ in the ensuing weeks.