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Roblox to announce Q3 results next week as stock trades sideways

Roblox to announce Q3 results next week as stock trades sideways

While Roblox’s (NYSE: RBLX) stock price ended Monday’s November 2nd trading session at $81.14 -2.88 (a loss of -3.43%), the company has been moving flat lately, losing only -0.05 over the past five days.

It appears the platform’s three-day outage slightly affected investor confidence in Roblox’s technical capabilities when the market reopened after the holiday weekend, just as the company looks set to announce its third-quarter results on November 9 in a live webcast conference call.

RBLX had a below-average performance in the stock market during the previous year. However, although there are encouraging indicators in the most recent progression of events, the medium-term picture is still unclear, although both the long-term and short-term trends are encouraging.  

Indeed, RBLX has been trading in a wide range of $69.77 – $86.15 over the last month. In terms of price, it is now trading around the upper end of this range, although the stock is still trailing the broader market.

RBLX 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

At the moment, Roblox doesn’t offer an entirely decent setup as the price movement has been a little bit too volatile to find a solid entry and exit point; hence, it is wise to wait for some consolidation first.

Nevertheless, a support zone spanning from $70.22 to $71.09, established by the convergence of various trend lines over different time periods, stands out when looking at the support. 

In contrast, a resistance zone spanning from $87.24 to $87.88 was created by combining various trend lines over different time frames, while resistance around $90.34 was noted from a horizontal line in the daily time frame.

Wall Street analysts predict

With that being said, seven Wall Street stock trading analysts have provided 12-month price estimates for RBLX over the past three months. In general, a median price goal of $89 is expected, with a high prediction of $103 and a low of $70 forecasted. Thus, the average price objective for RBLX indicates a 9.69% increase over the stock’s most recent trading price of $81.14.

RBLX  analysts’ price target. Source: TipRanks.com

In addition, the seven TipRanks experts have given their stock ratings. Noteworthy is that the majority are ‘Buy’ ratings, with five analysts advocating to purchase RBLX, while one analyst has advised to ‘Hold’ and another has recommended ‘Sell.’ 

As a result, most experts believe that Roblox is a ‘Moderate Buy’ due to its projected rise of 9.69% from its most recent price.

Roblox goes back online

Notably, the popular gaming platform among youngsters announced through Twitter on Sunday that it is now up and running around the globe. 

After a three-day downtime, which was unusual for a company of Roblox’s magnitude, the service has now been restored. Initial reports indicated that an “internal system problem” was the root reason.

Roblox users started experiencing issues on Thursday, according to Roblox founder/CEO David Baszucki, who said that a critical component in Roblox’s infrastructure got overburdened as a result of a small flaw in its backend service communications when under tremendous pressure.

Users had initially suspected that the blackout was caused by an influx of users participating in a Chipotle campaign on Roblox, which included a giveaway of $1 million worth of free burritos. 

Roblox’s increasing popularity

Interestingly, the Roblox crash happened only days after Facebook announced its rebranding as Meta. Roblox, which enables users to create and play games, is widely considered a metaverse symbol.

On a monthly basis, Roblox draws more than 43 million daily active players across a wide range of platforms such as iOS and Android smartphones and tablets, desktops, and Xbox, among others. 

In particular, the platform has been dominating the U.S. iPhone gaming market with over $3 million daily revenue. According to data acquired by Finbold, the top ten grossing iPhone games in the U.S. produce an estimated average of $11.2 million in daily income, equal to $336.2 million each month, as of June 2021.

Interestingly, the online gaming and game creation platform Roblox leads the list with an estimated daily income of $3.01 million or $92 million monthly.

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