Roblox Corporation (NYSE: RBLX) closed Tuesday, January 31 market session at $37.21, up +$1.68 (4.73%) on the day and +$2.71 (7.86%) over the last five days. Year-to-date (YTD), Roblox share price has climbed 37%, reflecting the rapid pace at which new purchasers are piling in since the turn of the year.
As a result, the trend in the short term is favorable, while the movement long term is neutral. RBLX has been trading in an extremely expansive range, going anywhere from $27.24 to $38.30 during the last month. Currently, it is trading close to the upper end of this range.
A support zone extends from $35.52 to $35.88, created in the daily time frame by a confluence of many trend lines and significant moving averages. RBLX has a good setup pattern, with low volatility and prices that have been stabilizing. There is a resistance zone beginning at $37.76, just above the current price; above this resistance band may be a decent entry opportunity.
Prominent players have recently shown interest in RBLX, which is a positive indicator. The Effective Volume indicator, which scans the 1-minute period for high-volume transactions, measures the behavior of significant players.
View on Wall Street
On Wall Street, 30 analysts have given a ‘neutral’ consensus rating for the stock. Notably, 9 experts advocate a ‘strong buy,’ and 2 a ‘buy.’ Elsewhere, 11 recommend ‘hold,’ and 8 collectively have opted for a ‘strong sell.’
Based on analyst stock evaluations for Roblox over the last three months, the average price forecast for the next year is $33.83; the target indicates a 9.07% downside from its current price.
The popular online gaming platform lets users develop and play games as well as interact with others. In recent years, it has expanded rapidly, allowing it to emerge as a formidable competitor in the gaming market.
In January, Roblox revealed key metrics for December 2022. In particular, the firm reported 61.5 million daily active users (DAUs), up 18% year-over-year YoY, and 4.7 billion hours engaged, up 21% YoY. The expected sales were between $189 million and $199 million, a 1% – 6% decrease YoY. At the same time, bookings were projected to reach between $430 million and $439 million, up 17% to 20% YoY.
The fact that Roblox has resumed its trend of robust bookings growth is the factor that excites the market the most. Specifically, virtual cash is used inside the video games hosted on the Roblox platform. Bookings are created directly from players purchasing that virtual money inside the game. Spending the game’s cash generates revenue for the developer.
Investors should resist getting too enthused about the bookings. Roblox has traditionally seen a significant increase in bookings around the Christmas season. This is likely because children often get gift cards that can be used to purchase in-game cash on the platform. Therefore, a successful month of December is something that can be anticipated from this company.
Having said that, Roblox’s stats for December do demonstrate that the platform is still successfully attracting new users while simultaneously keeping the ones it already has. Indeed, Roblox topped 200 million global downloads in 2022 to rank among the highest-grossing apps, ranking third globally among iOS and Google Play devices.
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