2023 has been good so far for the stock market, although the month of February has seen more volatility in both directions than investors experienced in the first month of the year. Major market indexes were mixed on Wednesday morning as market participants tried to incorporate the latest economic data into their views on the prospects for stocks. Shortly after the open, the Dow Jones Industrial Average (^DJI -0.11%) inched lower by about a third of a percent.
Companies continue to release their latest financial results, and a pair of reports prompted some big stock moves on Wednesday morning. Roblox (RBLX -3.66%) moved higher after telling shareholders about its strong performance. However, Sabre (SABR) wasn't as fortunate, seeing sharp losses as investors reacted negatively to its report. You can get the full scoop on both companies below.
Roblox is winning
Shares of Roblox moved higher by 19% near the open on Wednesday morning. The global gaming platform provider reported fourth-quarter financial results that held up better than expected and pointed to a potential future recovery.
Roblox did its best to keep up its positive momentum. Revenue of $579 million was up just 2% year over year. A big jump in spending on tech infrastructure and research and development caused net losses to nearly double to $0.48 per share. However, bookings climbed 17% from year-ago levels to $899 million, as daily active user counts climbed to 58.8 million, up 19% from where they were 12 months ago. Hours spent on the platform also posted an 18% rise to 12.8 billion.
Moreover, Roblox said that January's numbers looked even more promising. Revenue of $213 million to $216 million for the month was 22% to 24% higher than in January 2022, and estimated bookings were also higher by 19% to 21%. Engagement metrics kept climbing, with 65 million daily active users representing a big boost.
Investors have high hopes for Roblox amid efforts to expand beyond its kid-centered focus to embrace adults. Combined with international expansion plans, Roblox has a lot of potential, and if it can take steps toward becoming profitable, the stock has a long way to go to recover all of its losses over the past year or two.
Sabre hits turbulence
Meanwhile, shares of Sabre fell 12%. The global travel technology specialist's fourth-quarter financial report failed to live up to high expectations, given the rebound in travel activity during 2022.
Sabre's sales growth was reasonably good, but the company failed to deliver on the bottom line. Revenue of $631 million for the quarter was up 26% from 2021 levels, closing a year in which sales jumped 50%. However, Sabre posted an adjusted loss of $0.36 per share, which was worse than most investors had expected.
Sabre attributed its performance to a rise in global air, hotel, and other travel bookings, as pressures from the COVID-19 pandemic continued to ease. Revenue in Sabre's travel solutions segment grew at a faster 27% pace than its hospitality solutions segment, and travel solutions also posted a significant amount of operating income. By contrast, hospitality solutions suffered an operating loss for the quarter and the full year.
Investors haven't regained their confidence in Sabre stock, as the company has taken longer than hoped to make progress toward recovering to pre-pandemic health. Until signs of better times ahead take shape, Sabre's share price could remain well below where it traded in the 2010s.
