Benchmark Downgrades Roblox Corp. (RBLX) to Sell, 'Ah Heck, Here We Go Again'
Benchmark analyst Mike Hickey downgraded Roblox Corp. (NYSE: RBLX) from Hold to Sell, PT $33.00.
The analyst comments "Downgrade to Sell: We downgrade Roblox to Sell from Hold. We believe the platform may be entering lifecycle decline as weakness broadens from new-user acquisition in 1Q to monetization in 2Q. The issue is no longer a single product disruption, but deterioration across acquisition, engagement quality, monetization, cash flow and visibility. Q3 guidance was substantially below expectations, with midpoint bookings and AEBITDA 13.5% and 49.1% below consensus, respectively, and FCF guided to $(27.5)M. Management also withdrew annual guidance, provided no meaningful Q4 framework."
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Shares of Roblox Corp. closed at $48.67 yesterday.