Are Roblox’s Woes Temporary? Analysts Cut Forecasts But Are Optimistic About Outlook
Roblox Corp (NYSE:RBLX) shares recovered slightly in early trading on Friday, after tanking in the previous session on the company’s weak outlook.
The results came amid an exciting earnings season. Here are some key analyst takeaways.
Goldman Sachs On Roblox
Analyst Eric Sheridan maintained a Neutral rating while slashing the price target from $48 to $38.
Roblox indicated it witnessed a decline in engagement in the first quarter, across regions, age cohorts and platforms, while identifying the likely cause as “a need for fresher content and more personalized experiences (as opposed to any competitive dynamic or market saturation),” Sheridan said in a note.
In the near term, investors were likely to focus on “the broader month-to-month user growth/engagement patterns” to determine whether the landscape exhibits consumer fatigue or competition, the analyst stated.
“Looking long term, we still see Roblox as a well-positioned company in …
Full story available on Benzinga.com
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