RBLX trade ideas
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).
5/8/24 - $rblx - you can do better w/ less risk elsewhere5/8/24 - vrockstar - wow i'm not really a bear b/c the dollar denominator is a dumpster fire forever... but i'm writing again to warn that 6x sales for mediocre mgns (they should be MUCH better given it's a lot of UGC in this biz) and pretty poor cash generation requiring multi-year-legs of growth is simply not ownable in this tape. the stock since last print is looking v unhealthy (do yourself a favor and divide this one by QQQ to see the true comp of performance - frankly you'd best sell here and buy Q's and i'm not even sure that's a great idea at this moment in the month - that's another conversation, however). Again, i'm not actively shorting this print, but if i owned the stock I'd be dumping it now. Hard to dip buy a miss here. frankly the stock's probably worth sub $25. we can debate this in comments if you'd like. i'd like to own it, but at this valuation for the last year and a half... (the stock price is flat - be honest - you'd lost purchasing power), the valuation is not cheap... your risk reward is very poor heading into this print. stock is acting w a lot of hope here.
RBLX Roblox Corporation Options Ahead of EarningsIf you haven`t bought RBLX before the previous earnings:
Then analyzing the options chain and the chart patterns of RBLX Roblox Corporation prior to the earnings report this week,
I would consider purchasing the 40usd strike price Calls with
an expiration date of 2024-7-19,
for a premium of approximately $3.60.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
ROBLOX 46 AFTER EARNINGS ? Q1 2024 Performance:
On February 7th, 2024, Roblox Corporation reported its first-quarter 2024 financial results.
The company’s earnings per share (EPS) for the quarter were -$0.52, surpassing the consensus estimate of -$0.57 by $0.05.
Roblox’s revenue during the quarter was $1.13 billion, exceeding analysts’ expectations of $1.05 billion.
The company’s revenue growth was impressive, showing a 25.3% increase year-over-year1.
User Engagement and Growth:
Roblox’s success is driven by its strong user base and developer community.
The platform witnessed significant growth in average daily active users (DAUs), which surged by 79% to 42.1 million.
Hours engaged on the platform reached 16 billion, reflecting a 20% year-over-year increase.
Bookings grew by an impressive 161% year-over-year.
Analyst Expectations:
Analysts at Roth MKM maintain a buy rating on Roblox shares and have set a price target of $554.
JP Morgan analyst Cory Carpenter upgraded Roblox from Neutral to Overweight, raising the price target from $41 to $48. Carpenter highlighted the company’s consistent bookings growth over the past four quarters and projected first-quarter bookings of $927 million5.
Market Confidence and Future Prospects
Roblox’s innovative platform, expanding user base, and strong financial performance have instilled confidence in investors. As the company continues to enhance its offerings and attract more users, its stock price may continue to rise.
ROBLOX About to head to $48+ over 1-2 Months?ROBLOX is about to head to $48+ well in theory if .618 is held at 33.50 and change, then 60.93 is likely by July!
TipRanks has the average analysts predictions at around $50, which is also a key level at $48-$50
RBLX - Trades to take within the larger tradeThis is why I love swing trading - you can be in a HTF long trade while still making money on the pullbacks.
Follow along for continued analysis
Happy Trading :)
- TraderDaddyOG
Looking Immediately bullish on RBLX.🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
RBLX - Updated analysis for expected pullbacks and trade entriesThis is what we should see going forward if we want to continue with a healthy move up to retest orange tapered selling and beyond.
Happy Trading :)
- TraderDaddyOG
One word - RBLX! Our pick of the month is officially on its wayWhen I put out a video of this last week, the main reasoning was our sell-side tapering and clear liquidity building within our tapered orange selling channel.
We are now well on our way toward a HTF breakout and have a fully bullish outlook.
Happy for all who joined me on this move!
Happy Trading :)
- TraderDaddyOG
$RBLX Roblox Bearish to Bullish Reversal Trend Line BreakNYSE:RBLX Roblox Bearish to Bullish Reversal Trend Line Break. The technical analysis for Roblox indicates a transition from a bearish to a bullish trend, marked by a breakout above a key trend line. This reversal suggests a shift in market sentiment from negative to positive, potentially signaling further upward movement in the stock's price.
RBLX - Updated analysis to my Pick of the Month!I put out analysis on this trade on Friday and am still a believer in this stock longer term! Good signs on Friday off of a yellow pickup and looking to retest that more tapered blue selling algorithm before a continued activation by yellow and breakout toward the top of this daily IH&S.
Stay tuned, Happy Monday, and...
Happy Trading :)
- TraderDaddyOG
RBLX - 25 R:R Trade opportunity incoming. + Massive Daily H&STapering Tapering Tapering!
Looking for a buying continuation activation and breakout of our controlled selling algos.
If you look on the daily chart as well, you'll see a massive (beautiful) Inverse H&S pattern forming.
Happy Trading :)
- TraderDaddyOG
Jade Lizard Trade Expiring Just Prior to EarningsNYSE:RBLX
'Jade Lizard' Trade (expires JUST before earnings)
Call Credit Spread:
+1 $44 call 5/3
-1 $43 call 5/3
Short Put:
-1 $37 put 5/3
Credit received: $253
Outcomes @ Expiration:
1) If share price is above $44, then $153 profit (close call credit spread for $100).
2) If share price is between $37 and $43, then $253 profit achieved (via credit received).
3) If share price is below $37, then I will be assigned to buy 100 shares @ an avg cost of $34.47/each. Next step: sell calls until assignment.
(With a jade lizard, there's no risk to the upside).
RBLX - weekly time frame analysishi Traders,
Let's have a look at RBLX on the weekly time frame.
RBLX has been in a accumulation zone since May 2022 when the price found a bottom.
However, the price has been getting rejected at the 47 $ resistance which is also a 0,786 fib level.
From another hand, the accumulation has last forever and not sure if we're going to get another retest of the bottom.
2 scenarios which are shown on the chart:
1. Buy at the bottom if the price goes down. Entry: 25-26 dollars.
Targets/take profit levels are shown on the chart (each fib level may act as a resistance so do not hesitate to take profit)
stop loss: 22-23 $
2. If the price breaks the resistance at 47 $ and retests and confirm this level as a support, you may take a long position.
Targets the same as in the Scenario 1.
If you're patient , 95 $ and even 110 $ may be reached, but it will take some time.
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.
Waiting for a Pelosi LongWhat a range we have here on RBLX. With higher lows into a strong resistance, Its certainly looks bullish, but we need to wait, and it may be quite some time we will be waiting for. You can range trade this of course, but we are tightening up now so its going to get a bit choppy.
$RBLXlooks good to reclaim 200 and move to first blue line
rsi curling up
dip to lower blue line is a no brainer buy
The Gap Between What Is and What Will BeThere are 5 basic ways to trade a Gap or any line. In this video, I discuss two ways to enter the market using a Gap before I make the trade plan. The Gap entry techniques by themselves are of little use, but if we make a few distinctions in market structure and the process of a swing cycle, they can become functional.
Swing cycles have a process that they go through. As long as we understand that process we can view Gaps in the light of where they happen in that process. I'm going to focus these two Gap entry techniques in the lower portion of the reaction leg at the bottom pivot of a swing. The Gaps are what make up the pivot portion of the swing.
If you observe markets and swings you will often see this distinct pivot portion of a swing, it looks like a U at the bottom of a reaction leg as the buyers wrestle control back from the sellers.
Shane
Consolidation Consolidation suport with trendlien resistence trend 📈
conformation up side
Target 1st consolidation resistence
Roblox ReturnsThe previous power earnings gap resulted in small consolidation and a wave upward. With another recent strong earnings followed by a small consolidation hints towards history repeating itself. This is a relatively safe mid-long term play. Best of luck!
Looking bullish in the near future for RBLX!Thank you as always for watching my video. I hope you learned something very educational. Remember! Trading is very risky. Only risk what you are willing to lose.
