![]() ![]() Notably, this was the slowest YoY growth in bookings that the company has registered in the past 11 quarters. RBLX reported its financial results for the fourth quarter of 2021 on Februafter the market closed, and the company's share price fell by -26% from $73.30 as of Februto $53.87 as of Februin response to the recent quarterly results announcement.Īs per the company's Q4 2021 results presentation slides, Roblox's bookings increased by +20% YoY to $770.1 million in the most recent quarter. Such concerns and worries are the key reason for RBLX's stock price weakness in recent months. Roblox's disappointing Q4 2021 and January 2022 bookings confirmed investors' worst fears that the company will witness a substantial weakening of its growth momentum as the economy reopens and Work-From-Home tailwinds resulting from COVID-19 ease. RBLX's Stock Price Performance Since Late-November 2021 ![]() ![]() Roblox's shares have significantly underperformed the S&P 500 and dropped by -64% since late-November 2021 as per the chart below. As such, I maintain my Hold rating for Roblox's shares. ![]() On the flip side, there could be a modest rebound in RBLX's shares when the company sees an acceleration in its bookings growth again in the second half of this year. I don't see Roblox's shares recovering to $70 or anywhere close in the near term, as the implied Enterprise Value-to-Revenue and EV/EBITDA multiples will be very rich and hard to justify. This article touches on the potential of a share price recovery for Roblox. In my previous Augarticle, I cautioned that RBLX's "valuations have factored in the company's decent growth outlook to a large degree" and noted that "bullish investors have to consider the risk of a valuation de-rating." Roblox's shares have almost halved in the past six months since my earlier update RBLX's last traded stock price was $45.24 as of Maas compared to its share price of $84.04 at the point of publication of my earlier article. I have a Hold investment rating assigned to Roblox Corporation (NYSE: NYSE: RBLX). Leon Neal/Getty Images News Elevator Pitch ![]()
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