Roblox Stock Craters on Outlook. Is This a Buying Opportunity?
Roblox (NYSE: RBLX) share prices plunged after the virtual gaming platform issued disappointing guidance. The drop cooled off what had been a hot start to the year for the stock, which is still up more than 13.5% on the year as of this writing. The stock has risen by about 48% over the past year.Let's dig into the company's results to determine whether now is a good opportunity to buy the stock on the dip.One of Roblox's most important metrics is bookings. This is because of how the company recognizes its revenue. Roblox gets a 30% cut of each virtual dollar, called a Robux, spent on its platform. The remaining money goes to the developers and distributors of the games and experiences on its platform, which are oftentimes the same entity.Continue reading
Roblox (NYSE: RBLX) share prices plunged after the virtual gaming platform issued disappointing guidance. The drop cooled off what had been a hot start to the year for the stock, which is still up more than 13.5% on the year as of this writing. The stock has risen by about 48% over the past year.
Let's dig into the company's results to determine whether now is a good opportunity to buy the stock on the dip.
One of Roblox's most important metrics is bookings. This is because of how the company recognizes its revenue. Roblox gets a 30% cut of each virtual dollar, called a Robux, spent on its platform. The remaining money goes to the developers and distributors of the games and experiences on its platform, which are oftentimes the same entity.
