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Here's Why Roblox (RBLX) Fell More Than Broader Market

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In the latest market close, Roblox (RBLX - Free Report) reached $59.50, with a -1.42% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.53%.

Shares of the online gaming platform witnessed a gain of 0.97% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.73% and the S&P 500's loss of 4.03%.

Market participants will be closely following the financial results of Roblox in its upcoming release. The company is expected to report EPS of -$0.41, up 4.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 23.39% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of -$1.49 per share and a revenue of $5.28 billion, demonstrating changes of -3.47% and +20.78%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Roblox is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 136, finds itself in the bottom 46% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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