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Is This an Overreaction to Roblox Earnings?

By Jose Najarro – Aug 19, 2021 at 10:15AM

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Roblox's stock price has been highly volatile after reporting earnings.

In today's video I look at Roblox's (RBLX 1.80%) most recent earnings and share some bullish and bearish views on its earnings report. Here are some highlights from the video. 

  1. Roblox reported its second-quarter 2021 earnings after the market closed on Aug. 16. The company reported 35% year-over-year (YoY) bookings growth driven by roughly 29% YoY daily active users growth. 
  2. On the day of earnings, Roblox announced the acquisition of Guilded, a privately held company that owns a communication platform used by the gaming community. Guilded will continue to operate as an independent group, but it should be interesting to see how Roblox will use its brand new asset. 
  3. Roblox continues to push to become a metaverse leader. On Aug. 10, it held an exclusive launch party with KSI, a well-known YouTuber. The event provided Roblox users with a unique experience and the ability to purchase exclusive virtual merchandise, including limited edition items. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of Aug. 16, 2021. The video was published on Aug. 16, 2021.

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Roblox Corporation. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Roblox Stock Quote
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