The stock market shouldn't extract too much regarding the difficult time of topping prior periods where revenue growth jumped over 100%. The May bookings are estimated to have dipped 10% over the 2021 levels even with daily active users up 17% to 50.4 million. With bookings growth turning negative, Roblox is headed towards a few quarters of negative growth rates. Revenue growth has naturally slowed this year with the last quarter growth rate dipping to 39% growth and the May growth listed at only 29%. The company is quickly becoming a large mobile gaming business with Metaverse aspects, but the platform is still relatively small. The company is forecast to just reach $2.7 billion in revenues this year, so Roblox is only at the beginning of the journey.
Roblox only recently became a multi-billion dollar revenue company.
My investment thesis remains bullish over the long term, but the current stock view is much more Neutral with the gaming platform still struggling to top tough comps while the stock recently doubled from the lows. After a big rally since the mid-June low, Roblox ( NYSE: RBLX) has clearly run too far for the current market realities.
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