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Roblox Corp.
RBLX,
shares continued to decline following Thursday’s close after the social-media platform released August metrics. On Thursday, the company said that its number of daily active users rose 24% to 59.9 million for the month of August, revenue was between $208 million and $211 million, for a 22% to 24% rise from a year ago, and bookings were up 5% to 7% to between $233 million to $237 million, held back by a strengthening U.S. Dollar. The actual numbers had been first been released about an hour before the market close, and coincided with a sharp stock price drop of about 7% within a few minutes to about $43. Shares, which had been up around 2.5% before the August numbers started to circulate, closed down 3.5% for the day at $43.50. After hours, shares declined another 2%. A month ago, Roblox shares fell after the company’s year-over-year bookings unexpectedly declined for a second quarter in a row
but was quick to note that July numbers were improving. Starting the week, one analyst covering Roblox cautioned that the rise of the so-called metaverse should not be necessarily equated with success at Roblox. While the company is a forerunner in providing users the means to create virtual worlds and communities, Cowen analyst Doug Creutz said companies with deeper pockets like Meta Platforms Inc.
META,
Alphabet Inc.
GOOG,
GOOGL,
and Microsoft Corp.
MSFT,
are going to provide Roblox with a ton of competition.
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