Roblox (RBLX -1.01%) might not be growing as it was previously, but that does not mean that it's game over for this metaverse stock. Today's video focuses on bullish and bearish thoughts about Roblox after its recent earnings results, which drove its stock price to drop over 25%. Here are some highlights from the video.
- To many, Roblox was a high-growth metaverse stock, but we are seeing what happens when the growth is less visible. Roblox reported 20% year-over-year (YOY) growth in bookings versus the 172% growth it saw at the same time last year. To make matters worse, January's 2022 monthly metrics are looking even worse, with only a 3% YOY growth in bookings.
- Even though bookings might not be growing in triple digits, double-digit growth is still impressive. Roblox has also seen strong YOY growth of 33% in monthly active users, reaching a total of 49.5 million users. The development is coming from regions outside the USA, and unfortunately, users in the U.S. and Canada are down both yearly and sequentially.
- A true winner in the metaverse will be a platform that can attract businesses and provide a positive experience to users. Four well-known companies or entities have created experiences in Roblox's platform in the past few weeks: McLaren, NFL, Alo Yoga, and globally known DJ David Guetta.
Click the video below for my full thoughts and analysis.
*Stock prices used were the market prices of Feb. 16, 2022. The video was published on Feb. 16, 2022.
