Why Roblox (RBLX) Stock Just Sinked 9%

Shares of Roblox (NASDAQ: RBLX) are down 9% in pre-open Wednesday after the company released certain key metrics for November.

Daily active users (DAUs) came in at 49.4 million, up 35% year over year. Hours engaged on the platform soared 32% YoY to 3.6 billion.

Estimated bookings for November 2021 were between $208 million and $211 million, up 22% - 24% YoY. Estimated average bookings per daily active user was between $4.21 and $4.27, which is down 8% - 9% YoY.

Overall, revenue is estimated to come in between $184 million and $187 million, up 84% to 87% YoY.

Stifel analyst Drew Crum had anticipated November bookings at around $220 million.

“Results came in slightly below our expectations and appeared to trail the historical trend line whereby November typically experiences a modest sequential uptick vs. October. We think shares will be down on this update. With that said, December is seasonally the most important month of CY4Q, and thus we are not making any adjustments to estimates at this point,” Crum said in a client note.

Earlier this month, KeyBanc analyst Tyler Parker initiated research coverage on Roblox with a Sector Weight rating.

“We view RBLX as a strong growth story at an appropriate valuation (18.5x 2023E EV/bookings), and therefore see neutral risk/reward,” the analyst said in a note.

Roblox stock price closed at $107.67 yesterday, up 55% YTD.

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