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Roblox (RBLX) Stock Falls Amid Market Uptick: What Investors Need to Know

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Roblox (RBLX - Free Report) closed the latest trading day at $66, indicating a -0.15% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.

Heading into today, shares of the online gaming platform had gained 10.98% over the past month, outpacing the Consumer Discretionary sector's loss of 1.39% and the S&P 500's gain of 2.08% in that time.

Market participants will be closely following the financial results of Roblox in its upcoming release. The company plans to announce its earnings on February 6, 2025. The company is forecasted to report an EPS of -$0.46, showcasing a 11.54% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.37 billion, showing a 21.48% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for Roblox should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.63% increase. As of now, Roblox holds a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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