Published - August 11th, 2023 @ 09:45 AM (GMT+2)

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Roblox Corporation (NYSE:RBLX), a leading online entertainment platform, has been in the spotlight with mixed opinions from analysts. D.A. Davidson analyst Franco Granda initiated a Buy rating on Roblox, with a focus on stocks like Unity Software and Playtika Holding. On the same day, Goldman Sachs reiterated a Sell rating on Roblox. Truist Financial analyst Matthew Thornton maintained a Hold rating on Roblox with a price target of $45.00.

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Market Cap and Insider Activity

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Roblox's market cap is currently $18.69B, with a P/E ratio of -17.08. Corporate insider sentiment is negative on the stock, indicating an increase in insiders selling their shares of RBLX in relation to earlier this year.

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Roblox's Q2 Earnings and Stock  Price History

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Roblox shares crashed nearly 22% after reporting earnings below analysts' expectations. The company lost 46 cents per share on bookings of $781 million for the June-ended quarter. Analysts were expecting $785 million and $46 million in adjusted earnings before interest, taxes, depreciation, and amortization.
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The Roblox stock initial public offering (IPO) occurred on March 10, 2021, with a suggested price of 45 per share. The stock closed at 69.50 on the IPO day, more than 54% above the IPO price. In May 2022, Roblox stock bottomed out at 21.65, and amid Wednesday's collapse, the previous buy point is no longer valid.

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Roblox's Role in the Emerging Metaverse

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Roblox is considered a play on the emerging metaverse, a next-generation version of the internet. The platform allows users to create their own games, and developers receive 30% of the proceeds generated from a game. The metaverse is described as a persistent, shared, 3D virtual environment, encompassing technologies like virtual reality and augmented reality.

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Conclusion
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Roblox stock is one of the metaverse stocks in the stock market rally. The company's lack of earnings growth should be a concern for growth investors. Roblox Corporation's recent performance has drawn mixed reactions from analysts. With a significant stock crash after Q2 earnings and a role in the emerging metaverse, the company presents both opportunities and challenges.

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