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Why the Market Dipped But Roblox (RBLX) Gained Today

Roblox (RBLX) closed the most recent trading day at $39.80, moving +1.82% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.95%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq decreased by 0.84%.

The online gaming platform's stock has dropped by 4.21% in the past month, falling short of the Consumer Discretionary sector's loss of 0.94% and the S&P 500's gain of 1.78%.

Market participants will be closely following the financial results of Roblox in its upcoming release. The company plans to announce its earnings on May 9, 2024. In that report, analysts expect Roblox to post earnings of -$0.54 per share. This would mark a year-over-year decline of 22.73%. Meanwhile, our latest consensus estimate is calling for revenue of $930.43 million, up 20.24% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$2.10 per share and revenue of $4.23 billion, which would represent changes of -12.3% and +20.08%, respectively, from the prior year.

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It's also important for investors to be aware of any recent modifications to analyst estimates for Roblox. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Roblox currently has a Zacks Rank of #4 (Sell).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Roblox Corporation (RBLX) : Free Stock Analysis Report

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Zacks Investment Research