Historically, stocks tend to disappoint when analysts are downgrading them. Others who have lowered their expectations are from Needham, Goldman Sachs, BTIG, and Morgan Stanley. In the past few months, most analysts following the company have lowered their target because of the expected slow growth.įor example, as shown below, analysts at Stifel Nicolaus lowered their target from $110 to $90 while those at Truist lowered it from $92 to $72. The RBLX share price also crashed because of renewed worries from sell-side analysts. Indeed, the most metaverse cryptocurrencies like Axie Infinity, Decentraland, and The Sandbox have all crashed by more than 60% from their highest levels on record. Similarly, its loss per share of 25 cents was lower than what analysts expected.Īdditionally, the Roblox stock price has retreated as the earlier excitement about the metaverse evaporates. Its revenue of $770 million was lower than expectations by about $5.85 million.
Third, Roblox recent earnings missed the analysts’ forecasts by a wide margin. Therefore, the exit from a country with over 720 million gamers has pushed many investors away from the company. The firm said that it shut its iOS and Android apps in January in a bid to work on a new one. Second, the RBLX stock price has crashed because of the company’s decision to exit the Chinese market earlier this year. This ETF is made up of some of the top companies that shone during the Covid-19 pandemic, like Teladoc, Shopify, and Spotify. Most stocks that did well during the pandemic have sold off.Ī good example of this is Cathie Wood’s Ark Innovation Fund, which has crashed by over 62% from its highest point in 2021 and is trading at the lowest point since June 2020.
First, the decline is mostly because of the ongoing rotation from lockdown stocks to reopening ones. There are several reasons why the Roblox stock price has crashed hard in the past few months. In total, these users stay on the platform for over 10 billion hours every quarter.
Roblox is an extremely popular platform with almost 50 million daily active users from around the world.